Will student loans effect my car interest rate ?

[Jajamom23]

Hello everyone, 

I am about a month away from being discharged via chapter 7 and I need your help. I have a vehicle that I want to give up from my bankruptcy but I'm not sure if I should purchase now or wait a while to save more money. My vehicle is leased through capital one. 
1. Does anyone have experience with capital one auto picking up a vehicle after discharge? Do they take it unexpectedly or arrange a pickup? I'm wondering how long I will likely keep my current vehicle after the discharge. 
2. I have student loans that have been removed from my credit report while awaiting discharge. I wonder if I wait until after discharge to purchase that my student loans will cause my credit score to drop and make it harder to get a decent interest rate. My current vehicle has a 5% interest and Carvana is currently offering me 16%. My best friend was offered 27% interest after her bankruptcy. 

[pizzadude]

I don't think that the student loans will materially affect your FICO score ;  given that you have a BK7 looming, it's going to have the biggest impact on your scores and ability to qualify for financing. 

Did your BK trustee give you clearance to purchase a new car before your BK discharge ?

[Jajamom23]

I don't have any direct access to my trustee. When I call her phone number it just has a message about the process. So far I just googled if I am able to purchase a car prior to discharge during chapter 7 and it looks like it won't be a problem. I've always received the approval through Carvana which is where I want to make the purchase. 

Do you have any experience with giving up a car after chapter 7? Do you know the process? Will they arrange a pickup? Or will they randomly pickup without notice ? 

[JoeRockhead]

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@Jajamom23 wrote:

I don't have any direct access to my trustee. When I call her phone number it just has a message about the process. So far I just googled if I am able to purchase a car prior to discharge during chapter 7 and it looks like it won't be a problem. I've always received the approval through Carvana which is where I want to make the purchase. 

Do you have any experience with giving up a car after chapter 7? Do you know the process? Will they arrange a pickup? Or will they randomly pickup without notice ? 

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Just me personally, I don't think I'd be willing to risk complicating the case, or a dismissal of the BK. I'd make more of an effort to contact your trustee prior to pulling the trigger on another vehicle loan prior to discharge.

You can call your current lender and tell them you want to voluntarily turn the vehicle in. They might tell you where you can take it, or they may have the recovery company reach out to you to arrange a time and place they can pick it up. Otherwise, once the payments are 90 days or more past due, it becomes subject to being picked up at any time, night or day... without any notice. 

[Jajamom23]

Ok I will wait. Thank you