Getting an auto loan pre bankruptcy

[Lexi0000]

Hello,

I've been reading the forum but couldn't find anything pertaining to pre bankruptcy auto loan. 
I've made up my mind today that I'll file for bankruptcy and I'm planning to do it without an attorney. I've been doing lots of research. I'm single with no assets whatsoever. But I do need a car.

I've been doing the Lyft car rental program because I couldn't afford a car- technically I still can't, but I'm planning to continue Lyft to pay for the note. I was doing Lyft as a side gig, paying them $250/wk, but also using the car for my personal errands. With the Covik19 situation, i had to return the vehicle. Now I rent when needed and mostly on week ends. I'm working from home right now.

I figured I might as well get a certified car with some warranty left so I wouldn't have to work so much with Lyft rentals.

My score right now is FICO 717 with 83% DTI. I have no negatives and I've continued to make the payments. However now that I've stopped doing Lyft, I no longer have the extra income and i have to choose between paying my rent or my credit cards. 

I think I will likely get better rates if I apply now rather than if I wait after bankruptcy . Carvana did a soft check and I my rate was 8.1%. I never had such a high car loan rate in my life! 😓 I'm planning to try a couple credit unions in my area in the hopes of getting something around 5%, for my credit score.

I'm interested in hearing your opinions on if I should get a loan before or after I file for bankruptcy.

[FireMedic1]

Do you have a full time job? Steady source of income? Plus getting expensive things before BK filing is looked down upon. Plus you'll have to decide to reaffirm the loan so it counts on your credit. If you dont reaffirm and still pay. It wont report on your credit reports. Look into legal aid society in your area for free legal advice. You'll be cutting it thin. If you cant afford a car as you said. How can you get another car? To finish. You gotta get your util down to gain some points for lower interest pts. Its too high. Good Luck!

[Lexi0000]

Hello 👋🏾

I do have a steady job. And I need a car. Once the debt is removed, I will have more room to breath.

Thanks for your advise.

[elixerin]

it's unadvisable to remove debt and try to take it on at the same time.. i think i know what you're attempting in which case who cares what the interest rate is if you just wanna ride around in a BK-Wrapped ride free for a while lol. If you're ch7 it'll just get repoed and much faster since it will look almost back to back.

My mom put $60,000 down on a $102k purchase price bentley, paid for years with maybe 15-20k remaining on the note. Was repoed auctioned and sold for about 60% of the Down Payment amount within 6 months. In the case of my mom she filed BK after the repo just to clear debts and move on. But yeah, a lot of effort/headache for just a little extra time. Not worth it imo

Best wishes hope everything works out

[Lexi0000]

Hi there,

I actually do care about the interest rate; that's why I'll likely apply at a CU. Hm, I'm not so sure it'll get repoed if I want to continue making the payments.🤔

Thanks for sharing your experience!

[FireMedic1]

Well it would be best to get an attorney with all you want to do. Thats a lot with Lyft which is income, full time job, and buying another nrewer car under warranty. JMO.

[ballysdad]

Not sure if it matters legally or not but Carvana's paperwork that you sign electronicly specificly asks if you are currently or planning on filing BK. 

[Lexi0000]

Hi there, me again. I just read about the term "cross-collateralization". I finally got approved with Bank of America at 4.54% for $17k but I also have a credit card with them. This rate is still pretty high in comparison to what I've had in the past. I guess I've come a long way (sigh). Does anyone know if they do cross-collateralization? I'm not jumping yet until I get this part cleared out. Appreciate your feedbacks!