Need advice regarding car loan after Chapter 7

[0REDSOX7]

I agree. Patience is better. I just didn't have the time nor money to wait. My cars were going back and needed something.

My rates are high, yes, but will be refinanced in a year.

I trust the dealer did the best he could with us because of all the business we had done with them in the past.

I had worked to have my CR updated prior to discharge so I could be as ready as I could.

Just for curiosity sake, how was GM Financial for you?

[cirrus00]

Thanks SoulMaster!!! I agree with you 100%! My fear is leaving for work and my car is gone! It will be taken right after discharge. I havent paid since Dec since they refused to affirm and also refused my payments, stating bk as the reason. With four kids I didnt want to take the chance of being without a car. And I didnt think you could rent for that price...when I looked online I was finding 500-600 a month rates. Also, didnt want a big hold on my debit card. 

Also....I would never buy new...its such a waste of money!!! I have been leaning towards a Kia Sorento. They are exactly what I need and a great price. 

I have read your plan several times.....and since I have burned both capital one and credit one, I think I will have to look else where!! Or wait awhile. I have searched on the internet and have only found one CU near me who does the credit builder loan, and they are about 30 minutes away. Maybe Im not looking hard enough. Im in the Columbus, Ohio area.

0REDSOX7...GM was very good to me...even up to Repo! I had financed my Honda Pilot with them in 2009 a couple months before I lost my job and everthing hit the fan. Through all my issues they never once threatened me and did everything they could to help me. They moved payments to the end and didnt charge me the fee several times. Even after repo they tried to work with me so I could get it back. But I decided to just let it go. It was  2006 Pilot, and after all the lates and missed payments I still owed 13k on it and it was starting to have problems. I think it was worth maybe 6k. 

I dont want to rush things, nor will I get stuck with something I cant easily afford, but I cant go without transportation. Im a single mom with 4 kids. Two are in different sports, and I have an infant. Kinda hard to get rides for all the running around!

[0REDSOX7]

I understand. There were many nights I lost sleep wondering I would get approved immediately after discharge. I had two cars with Honda Finance. Honda would not let say to surrender without making taking the car immediately (they file a motion to lift the stay) so I had to pay to keep them until discharge. Wish I had that 900/month for three months for a better down payment.

Have you gone to any dealers to just talk to them? I found that to be a good thing. I told them up front that i was unable to do anything right now but needed to get an idea of what I could expect.

The good ones will listen and let you talk to sales/finance managers.

You could definitely look into Santander or Road Loans. High rate but might work.

Work to clean up what you can on your CR now. Maybe the accounts will need to be updated to IIB.

When you go to a dealership post discharge, you can say a local CU has you approved for X rate. Even if it's a lie, they will try to beat it.

Good luck!

[cirrus00]

Thank you all so much! Makes me feel better! 

I have done a lot of cleaning up the reports since I started right after I filed. There are only two credit cards reporting as charge off, but they were charged off before I filed, so I dont think I can change those. I also got some Sallie Mae lates removed from two years ago when I didnt know my deferment had ended (because of all the moving I didnt get mail correctly). 

Everything on my credit report is a zero balance, except for the car I have now which is still reported as current and pays as agreed. They havent reported since Dec and is the only balance on my report. I also got a few collections deleted. 

Maybe I can try with Capital One financing after discharge, even though I included them in bk. And I can try renting a car until I can get a good deal.

Thanks again everyone, it really helps to get such geat advice and reassurance!

[Anonymous]

I just filed chapter 7 on 10/6 (Pro se). I have my 341 meeting on 11/7...my current credit score is 490 (Ouch!). Any advice on when is a good time to apply for a car loan?! My current vehicle will be repossessed at some point. They want me to reaffirm  the loan agreement but I wont because I owe double what its worth and it needs about $3k worth of work! Any suggestions would be appreciated! Im anxious to get back on the right track!

[0REDSOX7]

First thing I would start doing is working to clean up your credit reports - do not apply for any new credit until your discharge - that is key.

Your auto lender will not take your car until you are discharged unless they file a motion to vacate the automatic stay - which they may or may not do.  If they do, you'll know and you'll have to arrange a date/time/place to pick it up.

IF your score is that low now, as your accounts are updated to show a zero balance and Included In Bankruptcy - you will actually see an increase in your score - which is good.  If your accounts aren't reflected like this yet, I would start disputing them on your credit reports to get them updated - this way you'll have the best possible report at discharge.

Expect to be in subprime rates - upwards of 10+ percent - but it is the price you'll pay.

good luck.

[gmck2006]

I got a Capital One Blank Check auto loan right after my chapter 7 was discharged. I was able to go to any approved dealer and negotiate like I was paying cash. It was wonderful and with a 598 FICO I was approved up to $28k with an interest rate that depended on the year of the vehicle. I ended up with a 7.9%, 5 years on a car under 75k miles. I bought my wife a 2009 Nissan Quest (2 years ago) and negotiated $13,000 "out the door" (taxes, dealer fee, etc) on a van they were asking $14,000 for.

I highly suggest going through Capital One Blank Check. We went to a dealer before we applied and were quoted rates well over 20%. 

It was funny, we overheard the sales rep talking to the manager and he said, "Well at least we know they have good credit." We negotiated hard and were prepared to leave. Our van before we filed was also repossed as soon as we were discharged. We currently owe $7,000 and my credit is good enough to get a great rate on a new car but we decided to stick to payments under $250. It will be paid in full next year!

[0REDSOX7]

Cap One wouldn't touch us since we burned them in the BK... Didn't even hard pull us...

[gmck2006]

I burned Capital One as well - 3 cards totaling close to $20k and they approved me. That stinks that they wouldn't touch you.

[0REDSOX7]

No one knows the method to their madness.

Oh well, I'm in a much better spot now anyway.