Wells Fargo Dealer Services Auto Loan included in Ch 7

[apay]

Our file date was 3/31 and we are ammending today to add our auto loan from wfds.  The rate is like 17% and we owe a lot more that it's worth.  What happens if it's included?  Do they come pick car up, if so when?  Do they ask if we want to keep van and make payments at first?  Any experiences you can share?

Thank you!

[Anonymous]

If you've been making payments, and are continuing to make payments they won't come pick it up. You might have your attorney see if they will negotiate down to the current KBB value of the car and allow you to make payments on that amount, and negotiate the APR. I had a friend who was able to do that with their van and got 3k dropped off the balance and their APR lowered as well. It wouldn't hurt to ask. If you don't reaffirm it's basically pay and drive, and if you want to get a different car after DC you can with no further harm to you or your credit you would just call them and tell them to come pick the car up at that time. If you want to continue to pay onthe car until it's paid off you would then get the title to the car. I would possibly just drive and pay till after DC and see if you can get into a lower APR with a different vehicle at that time.

[apay]

Thanks!  We're currently behind on paying because we were planning to get a new car from a place the attorney recommended.  My concern is I don't want to be without a car, so not sure how long to go before trying to get new car.  Also, I don't want to get into another crappy loan.  So with that just wondering how/when to make any arrangements with wfds if we are only offered crappy loans and decide to do pay and stay.  Does that happen at the meeting?  Or does attorney do it or do we?

Our attorney didn't explain much about it, he was very tight lipped about it saying we can keep or include and didn't go into any details.

[Anonymous]

I would definetly look around and not go straight to the place your attorney suggested since I'll guess their cars are close to POS and will give you HIGH APRs. You'll also get letters from local dealerships about a month after filing. I would call around and ask questions, and see who is willing to work with you and don't just let anyone pull your credit or jerk you around. Places will give you loans after BK DC or even in open BK. (but your rates will be higher). If you can wait itll after DC that would be best. How many payments behind are you? The bank won't come pick up the car while the BK is open so you don't have to worry about it until after DC. You could ask your attorney to call WF or you could call and see what info they'll give you with regards to how long they give after DC before they'll come pick it up. I know at PenFed they are pretty slow going, and smaller CUs are quicker. I bet you could also find more info in the forums about WF.

[GatorsFan84]

Just to add on, I just went through same thing.  Included WFDS in Chp 7 but chose to keep the car.  What I didn't realize is that the loan no longer reports to your credit so it's doing nothing for your credit and rebuild.  A month after discharge I went to an AutoNation Nissan dealer and got a loan through Santander at 7.9%.  Santander is NMAC's pass-through subprime lender now and they have decent rates.  But I would get a new loan so it is reported and helps rebuild your credit.

[apay]

Did you just stop paying, did they pick car up, or how did you get rid of the car then?

My husband said he heard once they're notified you filed they'll come pick it up. I think I read they're not allowed to do that until after discharge? Do you know?

[GatorsFan84]

I reaffirmed my car during the BK process.  You can choose to not and let it go back to the bank and include it in the BK.

I was ahead on my car so I was able to trade it into a dealer.

[StartinOver]

They can't pick it up until the judge releases it. Which can be before the discharge.