topic Re: Auto loan during open ch 13? in Bankruptcy

Auto loan during open ch 13?

Anonymous — Sun, 09 Jun 2019 17:22:09 GMT

Does anyone have info on if may possibly be able to finance a car? I'm one year and a few months in on a ch 13. When I filed my car was good I had no issues with it. Now everything has flipped. I need a car. I have worked a little on my credit. I know financing terms wont be pretty but I do need something that will take me through the rest. I dont have 2000 cash + to buy a car cash. I have steady employment though. I have a score of right at only 630?

Re: Auto loan during open ch 13?

DaveInAZ — Sun, 09 Jun 2019 19:24:37 GMT

I did a Chapter 7 in 2010 and have no experience with a Ch.13, but as I recall from reading here I believe you need the Trustee's permission to take on new credit during a Ch. 13, hopefully other with Ch.13 experience will chime in. If the Trustee approves with steady income you should be able to get a car loan, but with that score and in the middle of a Ch. 13 the terms won't be pretty.

Re: Auto loan during open ch 13?

Anonymous — Sun, 09 Jun 2019 21:07:17 GMT

Yes I've already talked to lawyer and all I'm to the point now where I need to know the criteria used and numbers as far as possible rate and allowable car price. Also many dealers dont seem to understand if you only want a cheap but reliable car.

Re: Auto loan during open ch 13?

Anonymous — Sun, 09 Jun 2019 21:07:54 GMT

Re: Auto loan during open ch 13?

pizza1 — Sun, 09 Jun 2019 22:47:45 GMT

OK, Im a little confused ....

You are currently in an open CH13 (a little more than year into your plan). You also now have a recent current collection as well from Verizon showing up is this correct?

First, pay off that collection asap. Anything negative after filing a BK, doesn't matter what chapter either, is bad.

Second, you will have to get approval from the trustee and judge to incur more debt while in a BK13 plan. They will want to know what it is you're trying to purchase, and rough payment estimates.

The trustee will then review it, decide if you'll still be able to make the BK13 payment reasonably with the new debt of car. If its deemed you can, they will motion the court and ask the judge to amend the current BK13, to include the new car loan.

Its not real easy...just asking your attorney if you can get a new car doesn't cut it. You can, but you'll have to get approvals from the court first. They may also pull your credit reports, and see your new Verizon collection as well, and demand that be paid.

As far as numbers are concerned...you'll have to deal with lender that works with folks that have "open" BK 13's, and I'm going guess the apr could be around 7-25% depending on your current scores etc...

Re: Auto loan during open ch 13?

Anonymous — Sun, 09 Jun 2019 23:37:53 GMT

Ok got it

Re: Auto loan during open ch 13?

Anonymous — Sun, 09 Jun 2019 23:42:05 GMT

So they told me anything outside the plan must be paid outside. So my car now in the plan they told me would have to be done separately. They also said I must have 1 car. I'm up to date as far as the trustee approving and all and the courts saying yes. Do you think my payment will lower with the car being turned in and the car that's bad is roughly 25 percent of entire balance of plan.. I filed bankruptcy because my tax situation was getting bad .

Re: Auto loan during open ch 13?

Anonymous — Mon, 10 Jun 2019 11:17:13 GMT

Penfed will finance you while in an open 13 with or without trustee approval.

Re: Auto loan during open ch 13?

Anonymous — Mon, 10 Jun 2019 12:01:14 GMT

Really I heard though that they may deny me an account due to bankruptcy

Re: Auto loan during open ch 13?

Anonymous — Mon, 10 Jun 2019 12:17:54 GMT

ofcourse they can, but they do not have any regulations against financing anyone in a 13 if its open or not. This is not hear-say.

Re: Auto loan during open ch 13?

Anonymous — Mon, 10 Jun 2019 12:22:07 GMT

Ok that's great but did you see where I had a collection from verizon.. I know its rediculous but it's true. And I stopped paying Bill's before filing so I have negatives. I really need a car and just dont want to waste the hp. I know I wont know until I try. I'm just terrified of dropping score any more. I dont have thousands to put on new car. I know I didnt play fair with bk. I just want to be not completley dragged with this process.

Re: Auto loan during open ch 13?

Anonymous — Mon, 10 Jun 2019 12:23:10 GMT

What was your credit like when joining?

Score?
Negatives?
Any positive accounts?
Inquiries?

Re: Auto loan during open ch 13?

Anonymous — Mon, 10 Jun 2019 12:24:47 GMT

I trust this site but I was also told target had a high rate of approval. I applied and was denied due to open bankruptcy.

Re: Auto loan during open ch 13?

Anonymous — Thu, 05 Sep 2019 16:50:08 GMT

Are there any requirements to join penfed? And what type of rate did you or your friend or whoever get from them?

Thanks!