cancel
Showing results for 
Search instead for 
Did you mean: 

Auto loan after chapter 7 discharge help

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
New Visitor

Auto loan after chapter 7 discharge help

I get discharged next week on sept 22 and I am wondering has anyone had any luck getting an auto loan fresh out of bk ? With no money down? Right now my credit scores are in the low-mid 500's but again this is before discharge so I'm not sure how much they will drop or rise after. Any help would be mucho appreciated . 

 

Also right now I have a secured capital one credit card for $200

my income is $2500 . I had one guy from the dealership tell me after bk it's more so if you have the income. I'm looking to purchase a vehicle around 30-40,000 (jeep, camaro) but I also need to be realistic. What were some interest rates you guys received fresh out of bk? 

Message 1 of 13
12 REPLIES 12
Regular Contributor

Re: Auto loan after chapter 7 discharge help

I got an auto loan during bankruptcy as I surrendered my previous car. The interest rate is 15.29. My discharge is scheduled for the 22nd of this month and I hope to refinance within a month or two.

 

My scores were  EX: 522 TU: 533 EQ: 550 on 8/24 when I went to the dealership. I did not have to put any money down. The car had rebates which we used in lieu of a down payment.

 

With your monthly income, $30-$40K is a very expensive car.

Starting Scores: Experian: 498 Equifax: 521 Transunion: 514
BK Filed: 06/19/17 - BK Discharged: 09/28/17
Current Score: Experian: 637 Equifax: 626 Transunion: 630
3/29/19

NFCU nRewards = $2,000 (unsecured at month 5); Capital One QuickSilver $2,000; Victoria Secret - $470; New York & Co - $800; Children's Place - $600.
Message 2 of 13
New Visitor

Re: Auto loan after chapter 7 discharge help

What dealership did you go through? What finance company?
Message 3 of 13
New Visitor

Re: Auto loan after chapter 7 discharge help

I got esxcellent terms (6.8%) and had an easy time with Carfinance.com this month.  I was discharged in the Spring of this year.  The loan was for a specified amount, which means it could have been no money down had I chosen a car that cost less than that.  I am well-employed. The car had to be from a franchised dealer in my state - one that sold new and used cars.  The paperwork was easy and the turnaround time was quick.  I was surprised.  Good luck.

Message 4 of 13
Established Member

Re: Auto loan after chapter 7 discharge help

30-40k car on 2500/month income?

 

is this gross income or net income?

 

because the rule of thumb is every 5k is about 100 a month in payments... in the financing terms after bk i would say about 120 a month.

 

so youre looking at 720-960/month on 2500 a month income... without even including registration, insurance, gas or maintenance???

 

if thats a gross monthly income that puts you at over 38% LTI on one single installment thats a secured asset.

 

many lenders wouldn't approve that honestly.

DISC 8/14/17: EQU: 494 TRS: 469 EXP: 492
GOAL: GET BACK TO 760
CURRENT: EQU: 598 TRS: 624 EXP: 605
Credit Karma: TRS: 678 EQU: 652
Rebuild Progress: PENFED Member, Chase Checking Account, Credit One Unsecured 300, Milestone Gold Unsecured 300, Sonoma Williams Comenity 250
Message 5 of 13
Regular Contributor

Re: Auto loan after chapter 7 discharge help

I went to Ourisman Hyundai Madza. The have 1st, 2nd, and 3rd chance financing. It's financed through First Investors Financial but I will be refinancing after discharge.

Starting Scores: Experian: 498 Equifax: 521 Transunion: 514
BK Filed: 06/19/17 - BK Discharged: 09/28/17
Current Score: Experian: 637 Equifax: 626 Transunion: 630
3/29/19

NFCU nRewards = $2,000 (unsecured at month 5); Capital One QuickSilver $2,000; Victoria Secret - $470; New York & Co - $800; Children's Place - $600.
Message 6 of 13
Valued Member

Re: Auto loan after chapter 7 discharge help

We used carfinance.com 6 months after DC and were approved for 25k at 7%...they had no problem giving us 37k for the same rate but we had the income to support it and did a decent rebuild prior to applying. Ally And Cap One also approved us, but at 8.5%. If you are only bringing home 2500 a month I would be looking at something much cheaper than a Jeep or Camaro.
Message 7 of 13
Super Contributor

Re: Auto loan after chapter 7 discharge help


@Pippy26 wrote:

I get discharged next week on sept 22 and I am wondering has anyone had any luck getting an auto loan fresh out of bk ? With no money down? Right now my credit scores are in the low-mid 500's but again this is before discharge so I'm not sure how much they will drop or rise after. Any help would be mucho appreciated . 

 

Also right now I have a secured capital one credit card for $200

my income is $2500 . I had one guy from the dealership tell me after bk it's more so if you have the income. I'm looking to purchase a vehicle around 30-40,000 (jeep, camaro) but I also need to be realistic. What were some interest rates you guys received fresh out of bk? 


If you can wait 6 months I would suggest doing so. You will likely get a much better interest rate. In the meantime work on establishing two secured credit cards and a small secure personal loan to get your scores up.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 8 of 13
Super Contributor

Re: Auto loan after chapter 7 discharge help


@shadanat wrote:

I got an auto loan during bankruptcy as I surrendered my previous car. The interest rate is 15.29. My discharge is scheduled for the 22nd of this month and I hope to refinance within a month or two.

 

My scores were  EX: 522 TU: 533 EQ: 550 on 8/24 when I went to the dealership. I did not have to put any money down. The car had rebates which we used in lieu of a down payment.

 

With your monthly income, $30-$40K is a very expensive car.


Ooohhh. yeah, I missed that. That is NOT realistic at all.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 9 of 13
Super Contributor

Re: Auto loan after chapter 7 discharge help


@NormanFH wrote:

@shadanat wrote:

I got an auto loan during bankruptcy as I surrendered my previous car. The interest rate is 15.29. My discharge is scheduled for the 22nd of this month and I hope to refinance within a month or two.

 

My scores were  EX: 522 TU: 533 EQ: 550 on 8/24 when I went to the dealership. I did not have to put any money down. The car had rebates which we used in lieu of a down payment.

 

With your monthly income, $30-$40K is a very expensive car.


Ooohhh. yeah, I missed that. That is NOT realistic at all.


IMO, OP should be looking in the $15K range.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
~~~Credit lines~~~~
SDFCU VISA Secured $250
Discover Secured $200
Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.