Refinance truck before or after filing for BK?

ktl72455 · ‎02-10-2018

Divorce

she has house ( its in his name then hers)

He has truck ( its in his name and hers)

Both have to get other spouses name removed. via refinance

He is wanting to file BK on all the credit cards and keep the truck and his motor cycle. Should he try to refinance the truck before or after filing for BK? His credit is shot now but all the CC's and the house will be included in debt to income and held against him or wait and file BK , so they are not included and the BK will be the one thing hurting his credit.

Either way he will prob need a co-signer but im not sure if its best to do the BK first or wait .

Any insight would be great so I can help guide him down the correct path .

From MI.
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Anonymous · ‎02-10-2018

He needs to consult his attorney. I don’t see how filing bankruptcy with her name as a co-signer is even an option.

Anonymous · ‎02-10-2018

Prolly best to refinance after the bk7 has completed. But it is gonna hard either way because the credit is bad already. At least after the bk7 everything will report 0 balances but included in bankruptcy.

As far as including it with a cosigner. It shouldnt affect them because they are not filing .

My ex wife filed a bk7 back in 2014 and we were joint on two mortgages. I was and still am paying both mortgages. It never reported on my reports as included in bankruptcy and I was told by her attorney that I would be fine.

ktl72455 · ‎02-10-2018

wrote:
He needs to consult his attorney. I don’t see how filing bankruptcy with her name as a co-signer is even an option.

Ex wife will not be the co-signer.. he is needing to refinance to get her name off the truck per the divorce agreement and she is to refinance and get his name off the house.

A friend or Family member will be his co-signer

From MI.
12/4/12 TU 589 MyFico ~EQ 579 MyFico ~EX 577(Fako)

Myfico 8 scores
6/12/20 TU 803 ~ EQ 814~ Ex 784
My Wallet: Cap1 3,500K ~FH 2950~Credit One 1750~Credit one #2 1250~Orchard Bank 400 ~NFCU nRewards 18,000~NFCU Cash Rewards 18,500 ~Care Credit 12000~Discover 6000~Lowes 5450~ Amex 5400.00 ~ Harvest King 8000 ~ Langley~Penfed~Service CRU~red stone cru~
UTL 17%

Anonymous · ‎02-10-2018

Ok my experience, I prequalified for cap 1 auto 1 month before filing I decided to wait until after my discharge to finance because I didn’t want to raise any red flags and incur new Debts prior to filing. After doing some research I found that it is very common for people to take auto loans prior to filing because it is more difficult afterwards. I think he should consider refinancing now before BK, after consulting with his BK attorney. He has an solid explanation for the new debt and his post Bk credit won’t be better than his pre Bk credit until a year or more down the road. Short term, Bk is best seen as a means for debt relief, not credit repair. Credit repair post Bk comes with time and responsible use of credit post discharge.