cancel
Showing results for 
Search instead for 
Did you mean: 

Dismissed 13 and auto financing

Highlighted
New Member

Dismissed 13 and auto financing

I have been pre-approved for a vehicle loan in chapter 13 and the bank is asking for the trustee letter or discharge papers to complete the loan, however my chapter 13 is being dismissed next week. If I provide dismissal papers the day I receive them, will I be able to proceed with the loan? It is from a subprime lender.
11 REPLIES 11
Highlighted
Frequent Contributor

Re: Dismissed 13 and auto financing

Discharged or dismissed? If dismissed, why?
Message 2 of 12
Highlighted
New Member

Re: Dismissed 13 and auto financing

A number of reasons. We included current cars in a 13 against attorneys advice (old and high mileage). Now we moved to a different state and need new cars. He suggested to save our money, will have the case dismissed for non-payment without prejudice. We hope to get cars that will last, return the older ones to the bank and eventually refile a new 13 and exclude or reaffirm the new (used) vehicles.

We were approved for a loan with a subprime lender w/ discharge or trustee letter. We are going to try to provide the dismissed papers as soon as we receive them and wonder if we would still be approved. The goal is to eventually refinance after we’ve filed and established a good payment history with the trustee
Message 3 of 12
Highlighted
Frequent Contributor

Re: Dismissed 13 and auto financing

This is a question for your lender.

 

If I were an underwriter, and you told me that your bankruptcy is being dismissed, I would re-evaluate my underwriting, which may result in a decline. The reason for this is that instead of having a reliable income and debt payments, you will be subject to a slew of collection activities and possibly lawsuits to collect on the debts that were being paid in bankruptcy.

 

 

Message 4 of 12
Highlighted
Valued Contributor

Re: Dismissed 13 and auto financing

You are going to have a very very hard to getting an autoloan with a dismissed chapter 13.

Message 5 of 12
Highlighted
Frequent Contributor

Re: Dismissed 13 and auto financing

Just a thought ... would you be eligble to convert to a Chapter 7 case?

Message 6 of 12
Highlighted
New Member

Re: Dismissed 13 and auto financing

That is the goal. If not we will redo a 13 in the state we currently reside... however... I need to secure new vehicles.
Message 7 of 12
Highlighted
Valued Contributor

Re: Dismissed 13 and auto financing

I don't think you are going to be able to do it.

Message 8 of 12
Highlighted
New Contributor

Re: Dismissed 13 and auto financing


@Kaysaint85wrote:
I have been pre-approved for a vehicle loan in chapter 13 and the bank is asking for the trustee letter or discharge papers to complete the loan, however my chapter 13 is being dismissed next week. If I provide dismissal papers the day I receive them, will I be able to proceed with the loan? It is from a subprime lender.

We did. We got a new car while in our Chapter 13, going the the Trustee and everything.  I have had back issues and other medical stuff happen that makes the car too small now.  We asked to have our 13 dismissed.  We then found a new car dealer that has "special financing" for people with credit issues.  Got a new Kia Soul at 10.9%.  Now we will haul it back into our new 13.  I wouldn't recommend doing that, but we had too- the first 13 was running oout of time left- and it wasn't dischargable- now this one is.

Message 9 of 12
Highlighted
New Member

Re: Dismissed 13 and auto financing

What bank did you go through? How soon after dismissal did you do it? Received dismissal today and need to figure something out fast!
Message 10 of 12
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.