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Question about BK7 to 700 plan...

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BeingBetter
New Member

Question about BK7 to 700 plan...

Hello All!

I have been lurking on these forums for a looong time but this is my first time posting.

I am filing BK7 this month. I am actually sending the last of my documents to my attorney tomorrow.

I have read the BK7 to 700 thread beginning to end. I have the original plan copied and pasted into a word document and printed out so that I can pencil in the dates after I'm discharged to stay on track.

My question is this.....

I'm about 99% certain I'm going to have to finance some sort of vehicle as soon as I'm discharged. My car was repossessed three weeks ago. I live in a super rural area with no public transportation.

At the moment I am borrowing a vehicle and making the payment in return for being able to drive it, which is ridiculously high.

Anyway, obviously this isn't a long term solution. I would love to be able to buy something outright but seeing as how I commute 150 miles a day I need something that is going to last longer than a month or two, which is about all I can afford to pay cash for.

The dealers in my area haven't let go of the cash-for-clunkers business and offer upwards of $3k for trade in of anything, so reliable older used cars are next to impossible to find.

Anyway.... Would financing a car after discharge tank my chances at doing well with the rest of the BK7 to 700 plan?




Posting from mobile, I'm sorry for the typos!
Message 1 of 8
7 REPLIES 7
0REDSOX7
Valued Contributor

Re: Question about BK7 to 700 plan...

Hello.

I was in your boat. I had to finance two vehicles post BK. I actually got decent rates (12.99% on both of them) five days post discharge.

I am following the plan as laid out minus the car loans.

I have already seen my score go from mid 500s to 625 as of yesterday (I am four months post discharge).

It is doable. I went to a dealer before my discharge and asked if they work with people in my shoes. They gave me good advice. A price range I should stay in and expected down payment to help getting the loan done.

I put 500 down on each and had no sides and drove off with 30 day tags (not dealer plates).

Just make sure oh work on your credit report while you're pending discharge. Make sure all accounts are updated and reporting properly so when you the time comes, everything is as it should be.
BK Discharge 2/11/14

Currently in the garden.
Message 2 of 8
BeingBetter
New Member

Re: Question about BK7 to 700 plan...

Whew! That's a relief to hear.

Where does that leave me with the credit builder loan? I would like to go ahead and do it for several reasons. I would like to start building a relationship with a CU, because I'm sure after two years I could refinance the vehicle at a much better rate with them. I also like the forced savings aspect.

Is this a good idea? Bad? Indifferent lol?
Message 3 of 8
TRC_WA
Senior Contributor

Re: Question about BK7 to 700 plan...

Credit unions are a good idea. Join a good one.

Who helped me with a great CC with low APR and refinanced my car? Most certainly not a bank... It was BECU.
FICO8 current as of : ----- EQ: --- TU: --- EX: ---
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
Verizon Visa $6500 Amex Delta Platinum $10,000 Care Credit $12,000
NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - balance $31k/6.94%
Total CL: $45,000 --- Total CC UTI: --% --- AAoA: 5.5 years --- Income: $200k
Last app: 11-30-23
Message 4 of 8
BeingBetter
New Member

Re: Question about BK7 to 700 plan...

Ok, I will do that!

Thank you very much for the advice!
Message 5 of 8
0REDSOX7
Valued Contributor

Re: Question about BK7 to 700 plan...

I would at least join a CU - the installment loan (credit builder loan) would be replaced by the car loan in this case - however, the point of the credit builder loan is to build a relationship with a local credit union.

 

The one I joined - they told me they just needed three TLs on my CR to be reporting positively for 12 months before I can refinance.

BK Discharge 2/11/14

Currently in the garden.
Message 6 of 8
MegaMom
Valued Member

Re: Question about BK7 to 700 plan...

I had to get a car 1 month out ok BK,  I had aquired a secured $300. card and that is all I had.  I was approved for 17k at 10.99%.

Its possible.  Good Luck to you.

BK ch7 filed 6/11 - Discharged 11/11
FICO EQ 648 TU 639 on 7/12
Current: EQ 698 TU 678 EX ?

Cap1Plat $4k. Cap1QS $3500. Cap1 Venture 15k VS $4700. BarclaysVisa $12k DiscoverIT $ 8000. Amazon 3k. Walmart 1500.
AmexBlue 2k
Message 7 of 8
MegaMom
Valued Member

Re: Question about BK7 to 700 plan...

Oh, and  no. It won't tank your plan.  Look in my siggy.  Smiley Very Happy

BK ch7 filed 6/11 - Discharged 11/11
FICO EQ 648 TU 639 on 7/12
Current: EQ 698 TU 678 EX ?

Cap1Plat $4k. Cap1QS $3500. Cap1 Venture 15k VS $4700. BarclaysVisa $12k DiscoverIT $ 8000. Amazon 3k. Walmart 1500.
AmexBlue 2k
Message 8 of 8
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