auto loan before discharge

[Anonymous]

I wanted to give an update for those needing an auto loan before ch. 7 discharge. We are about 4 weeks away from discharge and every day I had been praying that my car would last till then. Last week it finally called it quits, and unfortunately we need two cars to get to work in different directions. My credit scores right now are 638, 641 and 588. With the approval of our lawyer we started the search for a dealership that worked with an open discharge. Capitol one auto won't look at you until discharge. We finally found a small whole sale dealership that was willing to work with us. They needed proof of the 341 hearing, paystubs, mortgage statment, proof of residence and a whole list of other items. We were finally approved and picked up the car today! 2014 Ford Escape with 38,000 miles listed for 13,500. We put 2000 down and ended up with an interest rate of 12 percent. While it's not ideal, we'll hopefully refiance in 6 months through capitol one. It is possible to get an auto loan prior to discharge if you absolutely have to. Just wanted to share our expierence!

[pizza1]

Glad you were able to get approved! Not too many lenders will loan or give credit before discharge. Congrats to you!

[Maingal]

Are you in Texas ? I am in the same boat needing a new vehicle.

[Anonymous]

Thanks Pizza! Hoping this car loan will bring up my credit scores too!

@maingal, I'm in CT. I called a ton of places and asked if they worked with open BKs or not first. You dont want to waste the HP if they don't work with them. The big thing is to have the 341 hearing and report of no distribution. No one would even talk to us without that. They also required a little more money down then I would have preferred. Good luck!

[empressj]

Your post inspires me. Like you, we need another car and have been sacrificing with one for a while. Based on our 341 meeting hopefully we will be discharged somewhere in the beginning of 2017. Not sure if there much action required during this step but it's been quiet. In the meantime I've been praying and holding my breath.

Between reading posts, reviewing our credit reports on Equifax and Credit Karma I feel nervous/anxious and not looking to the whole buying another car process on top of worrying if Well Fargo will take our current car back even though we're always timely and no issues since having the car....Anywhoo...

I'll post my progress after everything is sorted. Congratulations again and best wishes on your rebuild x

[Anonymous]

Hi empress! The car process was def stressful, even tho our car broke a month and a half ago and we stopped paying on it then they still haven't come to take it!! Getting a new car before discharge wasn't easy but is def possible, call all our local dealers first, we found a wholesale place that was willing to work with us. Your almost there!!!

[empressj]

I was at my CU y'day and one representative asked if I was in the market to buy a car. We spoke briefly and encouraged me to come back when I was ready and speak with loan person/ underwriter. I was very upfront about our situation so that bit of info gave me some hope. She also mentioned secured cc though. I told her I wasn't opposed to ALP if that was one of the determining factors

[Anonymous]

Did you buy the car? I am in Texas and wondering the same thing. I need one right away but I don't want to jeopordize my discharge...