Payday Loan Fairy

I am about to file, and have a car/loan that is still owed 30k. I don't want to re-affirm that loan, and want to the car to be re-poed. Is the 30k cleared during the BK??
Well I want to get rid of the car, thats fine... But if I get rid of the car, am i responsible for the 30k still or does that go with the car?
I won't need the car for anything, I have another lined up, much cheaper, and with a co signer. I just want to not be responcible for 30 k, or the kbb says its worth 24k... the 6k.

Yes the debt you owe is "cleared" in the bankruptcy provided that you do not sign a reaffirmation agreement.. If you surrender the vehicle in the bankruptcy, any debt that you owe is discharged at the end of the bankruptcy. Discharged mean that you are no longer legally responsible for the debt nor can creditors attempt to collect it. Hope this helped

2007-06-20 16:38:40 by scooterdiamond

Bad Credit Dept Loans Help Credit Cards Bad Credit Cash Advance Loans Home Loans Home Loan Refinance Consolidate Dept and Avoid Bankruptcy Bad ...

is it a good idea to declair bankruptcy for about $24,000, and will it be any harder to get a loan or a mortgage after?

Unless you had a medical disaster, bankruptcy is going to hang you credit for a good 7 years, making car and home loans harder to get and more expensive IF you get them; and surprise, under the new bankruptcy lay, you may still have to pay a lot of the 24 k anyway.

2007-05-21 11:56:36 by Flyerfan

I refuse to buy from a dealer because I've sold cars before and I know what they're taught to do and I'll end up kicking someone in the teeth. I have a bankruptcy for a 100,000 laser back surgery I had after a car accident. It's prob not much more than a year old, if that.. and I want to get approved over the internet. I want a USED car from a private party seller. I really only need 5000-6000 but everywhere requires a min of 7500
Poopy.
Ideas?

Below are highlights of what you can expect when purchasing your first car after bankruptcy, based on my experience.

I think you'll be surprised by a few of the findings...

* Financing a new car is easier than financing a used car.

* New cars have incentives and/or rebates which can lower or eliminate the cash down payment needed to buy a new car. You just use the rebate as the down payment. So, when looking for a new car, it's often best to purchase the one with the highest rebate.

There's absolutely no reason you need to put several thousand dollars down to lease or purchase a new car. The most cash you should need after bankruptcy is $500 to $1,000—and that's if you do everything wrong! Anything more than that and you're either at the wrong car dealer or you want the wrong car.

Do your research. My favorite place to gather this information is Edmunds.com. Not only can you get a heads up on what rates and rebates are offered from every manufacturer.

Car dealers can be as different as a Mac and a PC—just because one car dealer says, "No," doesn't mean you can't be approved for a car loan at a decent rate.

The majority of car lenders don't use normal FICO credit scores to make a lending decision. They use auto-enhanced FICO scores called, FICO Auto Industry Option scores. These scores can be higher or lower than your regular FICO credit scores depending on how you manged you auto credit.

If you've filed a Chapter 7 bankruptcy it's not a good idea to try and finance a car before you're discharged—wait until you receive your discharge letter in the mail from the bankruptcy court...then try to finance a car.

If you've filed Chapter 13, you need trustee approval to finance another car. Make sure the deal makes sense before you approach your trustee. You need to have a good reason for your trustee to approve a new loan. For example, if your family situation has changed and you need a bigger vehicle for your growing family, or your car is a hoopty that just won't run anymore.

Do your homework and interview as many car dealers as possible. When interviewing car dealers do not allow them to look at your personal credit reports until you're ready. Remember, you want to avoid unnecessary credit inquiries. Credit inquiries can lower your FICO credit scores.

Some "subprime" lenders (lenders that charge you higher interest rates than mainstream lenders) could be your only option if you're in a hurry. Normally, I would warn you to stay away from subprime lenders. But if you didn't make your auto payments on time or had a car repossessed or included in your bankruptcy...subprime may be your only choice. However, not all subprime lenders are the same. Some will offer you a decent deal—others will try to take advantage of your situation. So make sure you interview lenders and compare what they offer you. The winner will stick out like a sore thumb.

So there you have it. Not a complete list, but a few nuggets of wisdom before you purchase your next car after bankruptcy.

2007-05-16 22:40:32 by fwerds

I have a car loan of about $10,000. I got this loan about 9 months ago. I am just wondering how it will affect me if my co-signer files bankruptcy.
The car is in my name and she is the co-signer. So with all this new stuff I know does this mean they can come take my car too? Even though I make the payments .

Assuming the car is in your name, being one of the co-applicants, you'd have to deal with settling the loan. It's best to talk to a bankruptcy lawyer on this. But as fas far as I know, it's best to have some kind of insurance on this loan that will keep the monthly payments flowing come what may. If nothing works and the bank has it's way, it's within its rights to repossess the car.

2008-06-13 01:15:30 by butterfly31201

I want to get a another car, I work fulltime, and I live at home with my parents , so i only pay 200 for rent .I think this is the best time to try to get another car since I have no other bills really, but I have no credit either.I have tried to get a secured credit card but i was denied. Can I still get a loan and where, if I have no credit and filed bankruptcy only a year ago? any advice?

i think anyone can get any loan with the right down payment.

2008-04-03 14:40:28 by red24

A friend declared Chapter 7 Bankruptcy last fall before the law change, and his debts were cleared and honestly I cant really say if it is a good idea or not for him to apply for a car loan as his first application for credit of any kind post-bankruptcy. I would tell him to look into credit counciling, but every site I have seen has some kind of a catch or is not entirely unbiased. The loan amount he wants is 15K for a late model used car. His income to debt ratio is excellent now, unlike a year ago when he was not recieving his pension.

Any advice for him considering it is roughly six months since his Chapter 7 bankruptcy discharge and if applying for a car loan is fine at this point?

You CAN get credit immadiately after a BK, but the rate usually sucks. You can rebuild your credit and get a better rate, but that takes time. Best thing to do is to start with a couple small credit cards (like a gas card and an overdraft visa) and build from there. Wait on big ticket items because the higher rate will affect you more.

If you HAVE TO get a car now, then bite the bullet and consider a less expensive one for a year or so and then get a better loan.

2007-01-23 12:02:24 by Middy S