topic Re: Auto Loan post Ch. 7 in Bankruptcy

Auto Loan post Ch. 7

Klbb — Wed, 08 Feb 2023 20:37:27 GMT

I filed Ch. 7 in September 2022 and will be discharged end February 2023. I absolutely must replace my vehicle in the next 6 months (sooner would be better). This is what I am working with:

$10,000-$12,000 down

2016 or newer (not a new car)

Looking to finance around $25,000

Current score (pre-discharge) is 620

Income is $130,000 annually

Currently have one CC with Capital One with $3,000 CL

Was denied by Capital One on pre-approval for auto loan (not sure if that is due to BK not yet being discharged). Any suggestions where else to look? Will I have to purchase from a dealer or can I purchase privately? This is all new territory for me so I appreciate any input.

Re: Auto Loan post Ch. 7

Shooting-For-800 — Thu, 09 Feb 2023 03:55:11 GMT

You got approved for chapter 7 making $130k per year with $12k in cash?

You nterest rate may stink, but you can get approved for a $20-40k car.

Re: Auto Loan post Ch. 7

hoosier64 — Thu, 09 Feb 2023 04:17:54 GMT

A good starting place for rebuilding your credit: How To: From BK7 discharge to 700 in 24 months or less (MyFico.com forum post)

Since you already have a Capital One card, you can skip the starter card recommended in the linked post.

You should be able to buy from a private party, but you will need to secure your own financing to do so. I would recommend working on your rebuild and seeing where your scores are at after discharge and everything is reporting properly. Keep the balance reporting on your credit card under 8%. You take a score hit if all your revolving lines report $0, even if that is the only one. You can pay the balance in full once it reports that small balance. You don't need to hold a balance and pay interest.

As far as what the good options are for financing a vehicle with low scores, I can't help you there. I am familar with the bad options if you find yourself with no other choices.

Be careful racking up hard pulls over time trying to get vehicle financing. Ideally, you want to apply for vehicle loans within a short period of time. I can't remember if it's 1 week or 2 weeks where multiple applications get treated as one for credit scoring for an auto loan or mortgage.

Re: Auto Loan post Ch. 7

Klbb — Thu, 09 Feb 2023 15:51:25 GMT

Yes, the BK was filed in September of 2022. By the time things are all said and done, that will have been 5 months prior to discharge. I do not have $12,000 sitting in the bank, but will have approximately $12,000 saved up through the course of the next few months. I am looking at purchasing 6 months out, but sooner if I am able to get my downpayment around. By wiping out some pretty high medical debt and some revolving debt, I am able to save monthly for a the down payment. I have worked very hard post-filing to scrimp and save for a down payment, knowing that my 20 year old car with over 400,000 miles would need to be replaced in the very near future.

Seems you are making quite a few assumptions not knowing all the details, number of dependants, etc. Everyone's situation is different.

Re: Auto Loan post Ch. 7

Klbb — Thu, 09 Feb 2023 15:52:15 GMT

Thank you for your response.

Re: Auto Loan post Ch. 7

Shooting-For-800 — Thu, 09 Feb 2023 22:00:15 GMT

@Klbb wrote:
Yes, the BK was filed in September of 2022. By the time things are all said and done, that will have been 5 months prior to discharge. I do not have $12,000 sitting in the bank, but will have approximately $12,000 saved up through the course of the next few months. I am looking at purchasing 6 months out, but sooner if I am able to get my downpayment around. By wiping out some pretty high medical debt and some revolving debt, I am able to save monthly for a the down payment. I have worked very hard post-filing to scrimp and save for a down payment, knowing that my 20 year old car with over 400,000 miles would need to be replaced in the very near future.

Seems you are making quite a few assumptions not knowing all the details, number of dependants, etc. Everyone's situation is different.

If you are snapping at me, don't.

I asked a very simple question.

The whole idea of a Ch 7 is that you have nothing left over each month to pay your creditors.

It is supposed to be much harder to qualify now for 7 instead of 13.

That is why they changed the laws.

Re: Auto Loan post Ch. 7

sccredit — Thu, 09 Feb 2023 22:10:09 GMT

@Shooting-For-800 wrote:
@Klbb wrote:
Yes, the BK was filed in September of 2022. By the time things are all said and done, that will have been 5 months prior to discharge. I do not have $12,000 sitting in the bank, but will have approximately $12,000 saved up through the course of the next few months. I am looking at purchasing 6 months out, but sooner if I am able to get my downpayment around. By wiping out some pretty high medical debt and some revolving debt, I am able to save monthly for a the down payment. I have worked very hard post-filing to scrimp and save for a down payment, knowing that my 20 year old car with over 400,000 miles would need to be replaced in the very near future.

Seems you are making quite a few assumptions not knowing all the details, number of dependants, etc. Everyone's situation is different.
If you are snapping at me, don't.
I asked a very simple question.
The whole idea of a Ch 7 is that you have nothing left over each month to pay your creditors.
It is supposed to be much harder to qualify now for 7 instead of 13.
That is why they changed the laws.

There are a lot of nuances within the BK code as you are aware. We don't know everyone's details or circumstances. Frankly, your question was irrelevant to the topic.

Re: Auto Loan post Ch. 7

TRC_WA — Thu, 09 Feb 2023 23:04:00 GMT

@sccredit wrote:
There are a lot of nuances within the BK code as you are aware. We don't know everyone's details or circumstances. Frankly, your question was irrelevant to the topic.

I'd have asked the same question.

In what state does $130k a year pass a means test for Ch 7? Please let us know... I'm asking for me and all my friends who were forced into a Ch 13 with lesser income.

Re: Auto Loan post Ch. 7

sccredit — Thu, 09 Feb 2023 23:10:59 GMT

@TRC_WA wrote:
@sccredit wrote:
There are a lot of nuances within the BK code as you are aware. We don't know everyone's details or circumstances. Frankly, your question was irrelevant to the topic.
I'd have asked the same question.

In what state does $130k a year pass a means test for Ch 7? Please let us know... I'm asking for me and all my friends who were forced into a Ch 13 with lesser income.

As I said, we don't any reasoning behind anything and none of this is relevant to OP's question. Now if you want to ask for OP's attorney contact info ask away.....

Re: Auto Loan post Ch. 7

Shooting-For-800 — Thu, 09 Feb 2023 23:49:09 GMT

@sccredit wrote:
@TRC_WA wrote:
@sccredit wrote:
There are a lot of nuances within the BK code as you are aware. We don't know everyone's details or circumstances. Frankly, your question was irrelevant to the topic.
I'd have asked the same question.

In what state does $130k a year pass a means test for Ch 7? Please let us know... I'm asking for me and all my friends who were forced into a Ch 13 with lesser income.

As I said, we don't any reasoning behind anything and none of this is relevant to OP's question. Now if you want to ask for OP's attorney contact info ask away.....

Who died and put you in charge?

Re: Auto Loan post Ch. 7

sccredit — Thu, 09 Feb 2023 23:54:50 GMT

@Shooting-For-800 wrote:
@sccredit wrote:
@TRC_WA wrote:
@sccredit wrote:
There are a lot of nuances within the BK code as you are aware. We don't know everyone's details or circumstances. Frankly, your question was irrelevant to the topic.
I'd have asked the same question.

In what state does $130k a year pass a means test for Ch 7? Please let us know... I'm asking for me and all my friends who were forced into a Ch 13 with lesser income.

As I said, we don't any reasoning behind anything and none of this is relevant to OP's question. Now if you want to ask for OP's attorney contact info ask away.....
Who died and put you in charge?

Now who's testy?

Re: Auto Loan post Ch. 7

Shooting-For-800 — Fri, 10 Feb 2023 00:13:20 GMT

me - because you decided to butt in to two different conversations.

Re: Auto Loan post Ch. 7

sccredit — Fri, 10 Feb 2023 00:01:17 GMT

@Shooting-For-800 wrote:
me - because you decided to but in to two different conversations.

I only stepped into one because someone failed to exercise common sense or common courtesy. If being called out on poor behavior (not to mention poor etiquette) upsets you that says more about you than me.

Re: Auto Loan post Ch. 7

Shooting-For-800 — Fri, 10 Feb 2023 00:12:43 GMT

@sccredit wrote:
@Shooting-For-800 wrote:
me - because you decided to but in to two different conversations.
I only stepped into one because someone failed to exercise common sense or common courtesy. If being called out on poor behavior (not to mention poor etiquette) upsets you that says more about you than me.

Hey Dad, mind your own business.

Re: Auto Loan post Ch. 7

TRC_WA — Fri, 10 Feb 2023 00:15:08 GMT

@sccredit wrote:
r common courtesy. If being called out on poor behavior (not to mention poor etiquette) upsets you that says more about you than me.

I could give a rat's either way. People scam and cheat systems every day... be it the bankruptcy courts... welfare... covid 19 relief checks... etc...

Can't help but call BS on a $130k BK 7 filing not involving fraud of some sort. I could be wrong though... according to my check a single person here in Washington state (one off the highest incomes) can make $74k... household of 2 here in Washington state can only make $90k...

Household of 6 is $138k... so maybe the OP lives in Seattle with a lot of kids.

Re: Auto Loan post Ch. 7

Shooting-For-800 — Fri, 10 Feb 2023 00:23:36 GMT

OK Gentlemen...

Let's let this die.

It's not a football forum.

LOL.

Re: Auto Loan post Ch. 7

sccredit — Fri, 10 Feb 2023 00:25:53 GMT

@Shooting-For-800 wrote:
OK Gentlemen...
Let's let this die.
It's not a football forum.
LOL.

Was going to make a joke about assuming genders but decided not to offend anyone else today.

Agreed, let's let this die. Have a good night, I am calling it a day.

Re: Auto Loan post Ch. 7

TRC_WA — Fri, 10 Feb 2023 01:00:41 GMT

Me too.

Re: Auto Loan post Ch. 7

JHAS2020 — Sat, 11 Feb 2023 18:29:48 GMT

Really enjoying your guys cat fight LOL

I see no problem with him getting a Chap 7. Its all about debt-income etc.

Just wanted to say try Pentagon Federal for the car loan, should be your best rate. Get your score up over 650. Maybe start with a credit card of theirs.

Re: Auto Loan post Ch. 7

RealEstateGuy89 — Tue, 14 Feb 2023 08:49:34 GMT

Maybe OP filed for Bankruptcy alone but income is 130k with significant other's income included. We shouldn't question their ability to save $10k-$12k in 6 months post bankruptcy either.

There's a lot of ways these things can go, so please let's be less judgemental and more understanding with each other.