IN NEED OF CAR LOAN BEFORE DISCHARGE!!!!!!!

cazz · ‎11-16-2015

HELLO EVERYONE!!! YOU ALL HAVE HELPED ME SOOO MUCH WHEN IT CAME TO REBUILDING MY CREDIT TO BUY MY FIRST HOME SO I NEED A LITTLE BIT MORE HELP. I FILED BK ON 9/28/15 AND I JUST HAD MY 341 MEETING ON 11/06/2015 AND I AM WAITING TO BE DISCHARGED. SINCE I NO LONGER HAVE MY CAR I AM IN DESPERATE NEED OF ONE! I NEED TO GET BACK AND FORTH TO WORK EVERYDAY AND I DONT HAVE THE MONEY TO JUST BUY ONE FROM CRAIGSLIST ETC. I WOULD RATHER GET A CAR LOAN. THERE IS A COMPANY HERE WHO I CAN GET A CAR LOAN FROM WITH A GOOD LOW PAYMENT AND ITS A CAR THAT I ACTUALLY LIKE. MY ONLY ISSUE IS OF COURSE IM NOT DISCHARGED YET! MY ATTORNEY TOLD ME TO TRY TO WAIT BUT I KNOW PLENTY OF PEOPLE WHO ARE CURRENTLY IN BK AND THEY HAVE BRAND NEW CARS. I REALLY WOULDN'T WANT TO TAKE A RISK AND RUIN MY DISCHARGE BECAUSE OF IT BUT I WOULDN'T BE ASKING IF IT WASNT AN ABSOLUTE NEED... SOOOOO... DOES ANYONE KNOW IF IT WOULD BE POSSIBLE TO GET A CAR BEFORE MY DISCHARGE IM HOPING TO BE DISCHARGED IN MID DECEMBER SINCE I HAD MY 341 IN EARLY NOVEMBER BUT I CANT LAST ANY LONGER WITHOUT A CAR. HELP PLEASE AND GETTING A CAR WITH CASH IN DEFINITELY OUT FOR ME

ezdriver · ‎11-16-2015

Please do not type all CAPS.

While awaiting discharge, you can shop around for a loan and car. The attorney gave you reasonable advice but if you can't wait then get on with it. Is there anything specific that I preventing you from shopping for financing now?

cazz · ‎11-16-2015

SORRY ABOUT THE CAPS MY COMPUTER IS STUCK AND WILL ONLY TYPE IN CAPS FOR THE TIME BEING. SORRY BUT NOTHING IS STOPPING ME OTHER THAN THE FACT THAT I AM AFRAID OF NOT GETTING MY DISCHARGE IF THE TRUSTEE SEES A CAR LOAN ON MY CREDIT.

StartingOver10 · ‎11-16-2015

Why can't you borrow a car for the next 30 days until you get your discharge in hand? Work out sharing arrangments with a neighbor or co-worker where you share a ride to work. You are only talking about 30 days here and then you will have your discharge. Then you can go shopping without taking the risk plus you get into mid-Dec where the deals are better. Otherwise you are going to put yourself into a high rate loan and most likely a no so favorable purchase price when you are in the middle of Bk. One you have the discharge in hand you are in much better shape to negotiate a better deal both on the purchase price and the interest rate.

Please consider doing something else for the next 30 days rather than running out and getting a bad loan. Try uber, try your neighbors, try your co-workers, try your family for ride sharing.

EDIT: I just read your post on your Bk filing where you filed for 10K of debt. Given that you had to file bk over such a small amount, any vehicle you go to purchase is not going to work unless it is substantially under $10k. Since you already filed, make the most of your new start and do not run back out and buy something you can't afford. Vehicles put many, many people into bankruptcy. Don't hurt your bk before you have even received your discharge.

Better plan:

Put together your budget for living and savings
Figure out what you need to do to increase your income because once you do, then you can buy a vehicle that you can afford.
Don't pick up any other debt

cazz · ‎11-16-2015

I have honestly tried everything i havent had my car since august and my coworkers and i now have different schedules and my family members only have 1 car themselves. Ive been using my moms car but she is now moving out of town so i wouldnt be trying to get a car before discharge if it werent my last option. I'm not too worried about the interest rate and payment amount because I've gone through this dealership before and they know my situation and they know i wont pay more than 300 a month so I'm ok with that. I just dont want to do something that might jeopardize my discharge. the people that i know that have car loans currently that arent discharged yet they went through a buy here pay here type of place so that it doesnt report to their credit and i dont want to be sneaky like that. I just need to know that its ok if i get one

cazz · ‎11-16-2015

oh i thought i only had 10k worth of debt but my car along was 16k worth of debt so i total i had about 40-50k

StartingOver10 · ‎11-16-2015

@cazz wrote:
I have honestly tried everything i havent had my car since august and my coworkers and i now have different schedules and my family members only have 1 car themselves. Ive been using my moms car but she is now moving out of town so i wouldnt be trying to get a car before discharge if it werent my last option. I'm not too worried about the interest rate and payment amount because I've gone through this dealership before and they know my situation and they know i wont pay more than 300 a month so I'm ok with that. I just dont want to do something that might jeopardize my discharge. the people that i know that have car loans currently that arent discharged yet they went through a buy here pay here type of place so that it doesnt report to their credit and i dont want to be sneaky like that. I just need to know that its ok if i get one

^^^This is exactly the wrong way to buy any vehicle. Before you attempt purchasing a vehicle go to the auto loan section and read the stickies. DO NOT BUY A CAR ON MONTHLY PAYMENTS. It leads to financial trouble.

There are other options. There is nothing wrong with buying a low cost cash vehicle ($2k or less) while you figure out what to do for the long term. The last thing you need to do is put yourself in debt prior to discharge. What is your gross income? What debts do you have now, your mortgage?

Anonymous · ‎11-16-2015

Ever thought about renting a car for a month or two until after your discharge?

CH-7-Mission-Accomplished · ‎11-16-2015

I'm not aware of any prohibition about getting a new loan while awaiting discharge. I read all my documents thoroughy and nowhere does it say you won't get new loans. Also at the 341 hearing the trustee does not ask you if you have taken out any new loans. I think it is safe to say that it is not advisable, but there is not a single report of a BK7 being dismissed due to getting a loan while awaiting discharge.

Chapter 13 is whole other matter. Any borrowing requires trustee approval.

If you insist on buying a car now, buy the cheapest car you can live with for six months to a year. Get a five year old Hoda certified or something like that. Do not go out and borrow 30K at 20% interest for 84 months.

You should NEVER shop based on payment. If you tell the dealer you want to spend $300/month, they will make it happen by extending the loan term and charging the highest interest they can.

Also new cars depreciate 20% when you drive them off the lot. A used car won't. So you can trade it in in six months or a year and buy a new car if you have your heart set on it.

Make sure you know the Kelley Bluebook and NADA values for any car you buy and don't pay a dime more than that!

You know most of us get into financial trouble due to impulsive financial behavior. It has gotten me two BK 7's now, one two years ago and one 25 years ago.

Starting off with a bad decision doesn't portend well for you.

If you MUST HAVE transportation now, get the cheapest car you can. You can trade it in later.

You will likely get 24% or 28% now. If you waited three months you could get 9%.

Anonymous · ‎11-16-2015

We had no choice but to buy a vehicle pre-discharge because mine was totaled in a car wreck, I waited until after the 341 meeting and made sure it was approved by my atty 1st and there was no issue. You won't have any problem buying a car pre-discharge, finding a finance company to do it before discharge might be an issue but again, we didn't have a problem. Only issue is the high % rate we got and are now paying But thats how it goes sometimes. Good luck to you