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commonman216
Posts: 2
Registered: ‎04-10-2013
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wells fargo dealer services

my 341 meeting is scheduled for may 7th. i have a car financed through wells fargo dealer services that i want to surrender in the bankruptcy. then get a used vehicle after the discharge. should i stop making payments now, and save the money for a future down payment, or will they come and take the car immediately. i talked to a finance guy at an auto dealer and he made it sound like they cant reposess it until after the discharge.

thanks in advance. i am so happy to have found this wonderful forum.

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Valued Contributor
starry1
Posts: 2,237
Registered: ‎11-29-2012
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Re: wells fargo dealer services

[ Edited ]

They cannot take it until after discharge.  Or they have to file a Motion for Relief from Stay and get the court's permission to come take it before discharge.  If you stop paying and they come take it without a court order or before discharge, they can get in trouble.

 

Talk to your attorney to make sure those rules apply in your jurisdiction before you stop paying though.


Starting Score: 11/29/12 TU 527; EQ 565; EX 564 fako - bk7 dc'd 2/15/13
Current Score: 10/26/14 TU 632; EQ 650; EX 641
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grassfeeder
Posts: 369
Registered: ‎03-01-2012
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Re: wells fargo dealer services


commonman216 wrote:

my 341 meeting is scheduled for may 7th. i have a car financed through wells fargo dealer services that i want to surrender in the bankruptcy. then get a used vehicle after the discharge. should i stop making payments now, and save the money for a future down payment, or will they come and take the car immediately. i talked to a finance guy at an auto dealer and he made it sound like they cant reposess it until after the discharge.

thanks in advance. i am so happy to have found this wonderful forum.


save the cash - however, it may prove very difficult getting a new car loan right after discharge so if you're saving up for a car - your best bet will probably be to buy a real cheap one for cash.

Filed BK7: 7/12 (discharge 10/12) 5/12- EQ FICO - 508 / TU FICO - 490
EQ FICO: 672 (10/14)
TU FICO: 648 (10/14)
EX FICO: 667 (10/14)
NFCU cashRewards $18,000 - NFCU Flagship Visa $18,000 - First Tech C.U. Cash Rewards $5,000 - Barclays Apple Card $2,000 - JCrew $4650
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Established Contributor
SoulMaster
Posts: 993
Registered: ‎11-08-2011
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Re: wells fargo dealer services

Yes, stop paying on anything that's going in the BK, save that $ for your down payment on the next one.

 

Also, "surrendering the car in the bk" doesn't make it disappear.  After your discharge, you'll need to work out with the lender where you're going to drop it off.  Also, look in to a 721 redemption.

 

If you can hang on to the car for a month after the discharge, that should give you ample time to clean up your credit.  With the right down payment, and the right lender, you should be able to get between 4 and 8% (C1 Auto Finance, Credit Unions, anything but the dealer) on a good used car.  No one without millions should ever buy new, but you can get 2-5% (C1 auto finance, Credit Unions, even some local banks) within 60 days of discharge if you want to be silly and piss your $ away on a new one.

 

On the other hand I REALLY like the Ramsey method for buying cars:

    1. Buy clunker (<$1000) you can afford to pay cash for
    2. Save $400/mo for 10 months
    3. Buy $4000 decent used car (This is Car #2)
    4. Sell clunker for EXACTLY what you paid for it (or keep it, whatever)
    5. Save $400/mo for 10 months
    6. Sell Car #2 for $3500-$4000 (older cars don't depreciate much in 10 months)
    7. Buy Car #3 for ~$8000 = really good used car
    8. Save $400/mo for 10 months
    9. Sell Car #3 for ~$8000
    10. Buy Car #4 for $12000 = GREAT used car (Incl 5 year old Jeeps, Jaguars, etc)

You get the picture and can repeat as much as you want, but in this plan you have a really good car in 20 months and a great car in 30 months without ever paying a dime in interest.

 

-SM

I am not an attorney and none of what I write should be construed as legal advice. For legal advice please consult an attorney.

Starting Score: ~470 preBK(8/2010)
Current Scores as of 3/15/14 All 700+. Last CR pull from a lender(housing) was mid-score 729.
Goal Score: 700+ - reached.
New Member
commonman216
Posts: 2
Registered: ‎04-10-2013
0

Re: wells fargo dealer services

ok thanks guys. ill hold off on the payments. does the trustee look down on having too much money in your accounts, even if your saving for transportation? ill definately get an affordable used car.

Frequent Contributor
grassfeeder
Posts: 369
Registered: ‎03-01-2012
0

Re: wells fargo dealer services


commonman216 wrote:

ok thanks guys. ill hold off on the payments. does the trustee look down on having too much money in your accounts, even if your saving for transportation? ill definately get an affordable used car.


Um, I would have the absolutely bare minimum amount of money in my accounts!!  I started to purge them while planning for BK and kept the money in cash at home.  Anything they deem "above and beyond" need - they can make you pay some of the trustees 

 

Remember, you're not supposed to be walking out of a BK with cash in hand and nice and pretty.  It's supposed to be a square one - no assetts, no nothing - rebuild from there.  DO NOT have bank accounts flush with cash.

Filed BK7: 7/12 (discharge 10/12) 5/12- EQ FICO - 508 / TU FICO - 490
EQ FICO: 672 (10/14)
TU FICO: 648 (10/14)
EX FICO: 667 (10/14)
NFCU cashRewards $18,000 - NFCU Flagship Visa $18,000 - First Tech C.U. Cash Rewards $5,000 - Barclays Apple Card $2,000 - JCrew $4650
In the garden starting 3/1/14 till ???

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