Chapter 7 Newbie

[Anonymous]

Hi everyone! I'm new to this forum and have already read a wealth of information; this site is awesome!  I have a question or few regarding post Chapter 7. Question 1: Is it better to purchase a new or used car post chapter 7? Which will have the better interest rates? Question 2. I already own a car that has been paid off prior to my chapter 7 filing- about  2 years now- (341 meeting is August 1). The car nor the lender I financed through were included in my bk (Wells Fargo Dealers) - does this provide me with a better chance of obtaining a better interest rate since I have history showing I've paid a car off? Or does this not matter since I've filed chapter 7?  Question 3: NFCU - The posts I've read on the forum specifically state San Diego- I reside in another state and wanted to know can I go the same route by joinig my local chapter and applying this way or is this something that only happens in San Diego? Someone else asked this question but I didn't see a clear response. I also read the 7-700 plan and plan on following it completely. I do not want to purchase a car at all but lo' and behold, this past Saturday I begin to have problems with it and I've never had a problem with my car mechanically. So I just want to be prepared in case it's the worst case scenario I was told this weekend- blown gasket  #teamnocarnote 

[Anonymous]

I'm also a CH7 newbie, we met with the attorney on Friday and should be filed this week. My answers are more on a financial/banking/collection aspect as that's my scope of work for the last 12 years..

1: New will generally have better rates, however they also factor in LTV, year, term, amount financed. However after BK I've seen some people get a 30% APR and others get 3% APR, so it really follows the lending guidelines of the lender. If you can secure your own financing prior to shopping at a dealership you're better off. Dealers will jack up the rate from whatever comes out of the computer, and they will 99% of the time give you the "best rate" they found, which is whomever will give them the largest kick back. If you do go through a dealer, just know that everything is negotionable, however just be realistic with your situation. If I were you, I would locate a local CU and join them for your banking, and inquire about an auto loan post BK. Ask around, talk with NFCU once you're a member, and you can try capone auto online, as another avenue. If you apply for ANYTHING do it on the same day or the following day so the hard pulls don't show on your Credit report for the other lenders to see. I would also suggest applying for credit early in the day and not on Fridays.

2:The fact that you had an auto loan and paid it off, will report positively on your credit. However it really won't help or hinder you in your search for a new car, the BK is what will get you. As long as you don't have any REPOs (which you don't) that's another big thing lenders look at.

3:  You don't have to physically live in California, you just donate your funds to the Navy League and say your chapter is the San Dieg one. No one cares, just save your welcome email like the thread stated, and send it into NFCU along with your membership application. You can't apply for membership online, you must print out the form and snail mail it back, or fax it back to them. Just be aware that they are very far behind in new memberships since they did a push for new members in June. I submitted mine on 6/28 in the AM and still haven't heard. They are hubbed in VA so also take into account time differences with them.

I'm also in the same situation with the car. I need to replace my husband's car which is included in a 22k loan we're filing on and giving his POS back to the CU, and I'm deciding if I want to give my car back and get something cheaper, since I can get a new car for less than the one I have now due to LTV and Negative equity.

[armymom]

Welcome to the forums! You can join NFCU by becoming a member of the Navy League but you MUST list your preferred council as the  San Diego chapter.  Once you have submitted your membership fee and receive your welcome email then are eligible to join NFCU.  If you are close to a branch  I would go in to join otherwise you will need to fax or email the required documents.  Good luck and keep us posted!