Payday Loan Fairy

My friend is planning on filing bankruptcy, we were wondering if her car loan will be discharged and she'll get to keep her car.

If her loan is discharged, no she won't get to keep the car. She might have to option to exclude the car from the bankrupcy filing, but then she'll have to pay the loan.

2008-10-19 20:21:38 by beautiful bird

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The majority of the debt that my husband and I have are in MY name although we have 2 car loans in OUR name. If I file alone, what will happen to these 2 car loans? Can we reaffirm the debt? Also, if we decide to put those 2 cars into the bankruptcy and file together, what will happen to the cars and how can we find means of transportation after a bankruptcy that won't cost us an arm and a leg?

if you are behind in the car payments and you are not upside down in the cars the you will need to file a 13 and put the payments in the plan you will keep the cars and continue paying for them through the plan. On the other hand if you are not behind you can file a 7 reaffirm the debt and you keep the cars and continue to make the payments.

2008-05-05 06:25:34 by *~Cam's Mommy ~*

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

I have a bankruptcy just discharged in October. I had my car totalled last week and I need a new/used car. I found out today from two dealers that I cannot lease a new vehicle but I am approved for $11000 with 13-15% interest for 60 months. Should I go for it and finance something for 60 months. I can afford $200 - $250 a month with $1000 - $3000 down. They told me also that I have to finance something newer than a 2002 with low miles. So I cannot pick a 2001 car with 80,000 miles on it. Weird. So what is the best thing to do then? Is this interest rate reasonable?

15% interest is going to be hard to beat.
The reason why you can't get anything old with high miles is because of your track record. The bank is not going to stick it's neck out on something that may need repairs soon after getting the loan. The way they see it, if you are faced with a $500 repair bill one month you will pay it instead of the car payment. Something with lower miles will have less chance of problems.

2008-02-12 11:22:02 by C S

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