Where can I get a Car Loan DURING Chap. 7 BK?

[Officer737]

Interest rates will vary but high teens is the norm for them (18-20%). All the horror stories I read about them was when people wanted to pay weeks late and stuff from what I read. I am suing them just long enough to refinance at a better rate. But it will show a positive TL after the BK so I can deal with interest till then.

[0REDSOX7]

Got ya. I'm gonna be in need of two vehicles post BK here in a bit. My wife and I have put firm limits of 17K a piece. We figure at 17% rate each, it would be less than the combined 875 we are paying now a month for two cars with negative equity.

[Officer737]

Redsox,

    I think your hardest problem is going to be getting 2 at once. I know Presitge will only let you have one at first. So may have to use a second company also. If I do plan it right on mine, I will actually have mine paid off in just under 2 years.

[0REDSOX7]

I'm trying to use capital one auto and Wells Fargo dealer services. My local dealer says they work well with post Bk for them so we shall see.

[Officer737]

Cap One is a company I am starting to some looks from to refi a vehicle I reaffirmed

[LieslMet]

You'll get in trouble if you do it before the 341 meeting... so DON'T. After the 341 - even the next day, as my husband did - you can. We had good luck going to a small dealer and using Credit Acceptance Corp. Interest rate was high - 21.99% - BUT we planned (and are) making double payments and will soon accelerate that so it's paid off in 16 months instead of 54. The effective interest rate, that way, is low. At this point, it's not even worth it to refinance to a lower rate... it'll be paid off in August.

[StartingOver10]

You will get a much better rate if you wait until your discharge is in hand.

Keep your existing vehicle until you get your discharge and then get the new one and surrender the old one.

[LieslMet]

The problem with thinking it will be okay until discharge is that the Motion to Lift the stay is easily made and even more easily granted. If you oppose, you do have a bit longer (30 days for the hearing)... but then you have to explain why you thought it would be okay to keep a car you're not paying for. Twice. The response time allowed for answering the motion before a judge is past the date of the 341 (and you don't want to explain yourself for that to the trustee either and make things harder for you; they want to see remorse), so you'll have the ability to finance a vehicle before discharge without alienating the trustee and jeopardizing your discharge. The motion to lift the stay will be approved and you'll be embarrassed and suddenly without a vehicle. It's putting off the inevitable and the lift, unopposed, wouldn't happen until after the 341 meeting anyway. 

[starry1]

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@LieslMet wrote:

You'll get in trouble if you do it before the 341 meeting... so DON'T. After the 341 - even the next day, as my husband did - you can. We had good luck going to a small dealer and using Credit Acceptance Corp. Interest rate was high - 21.99% - BUT we planned (and are) making double payments and will soon accelerate that so it's paid off in 16 months instead of 54. The effective interest rate, that way, is low. At this point, it's not even worth it to refinance to a lower rate... it'll be paid off in August.

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I didn't.   You can do it after filing according to my attorney. 

[StartingOver10]

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@LieslMet wrote:

The problem with thinking it will be okay until discharge is that the Motion to Lift the stay is easily made and even more easily granted. If you oppose, you do have a bit longer (30 days for the hearing)... but then you have to explain why you thought it would be okay to keep a car you're not paying for. Twice. The response time allowed for answering the motion before a judge is past the date of the 341 (and you don't want to explain yourself for that to the trustee either and make things harder for you; they want to see remorse), so you'll have the ability to finance a vehicle before discharge without alienating the trustee and jeopardizing your discharge. The motion to lift the stay will be approved and you'll be embarrassed and suddenly without a vehicle. It's putting off the inevitable and the lift, unopposed, wouldn't happen until after the 341 meeting anyway. 

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I had no issues keeping the car through out my BK. As I said before, the lender didn't even file for the Motion to Lift the stay.

Of course, I was making the payment for this vehicle that I was surrendering (and the one I reaffirmed) during the BK because I couldn't afford to wake up one morning without a vehicle. It was only 3 additional payments from filing to discharge (Filed Sept 30 and Discharged Jan 6th). It was peace of mind for me so I didn't make a poor decision during the BK process.

Each to their own. But it is a difficult way to turn over a new leaf if you are going to jump out and start paying on a high interest newly acquired loan for a vehicle during your BK. It truly defeats the entire purpose of "starting over".