Bankruptcy Car Loan
Bankruptcy Car Loan questions and answers
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Q: Chapter 7 bankruptcy reaffirm car loan?
I am about to file for bankruptcy and I have absolutely no other assets besides my car. My ex-husband co-signed for me and I am planning on reaffirming my car loan so that I can keep my car and continue making payments on it. I wanted to know if I file for bankruptcy but reaffirm my car loan will it have any negative affect on my ex-husband's credit? Also I live in Oklahoma.
A: The only negative impact on his credit report would be any missed payments.
If you don't re-affirm the loan, he becomes liable for the whole loan (but then you can't keep the car).
Q: What happens to a car/loan when bankruptcy is filed?
I am about to file, and have a car/loan that is still owed 30k. I don't want to re-affirm that loan, and want to the car to be re-poed. Is the 30k cleared during the BK??
Well I want to get rid of the car, thats fine... But if I get rid of the car, am i responsible for the 30k still or does that go with the car?
I won't need the car for anything, I have another lined up, much cheaper, and with a co signer. I just want to not be responcible for 30 k, or the kbb says its worth 24k... the 6k.
A: Yes the debt you owe is "cleared" in the bankruptcy provided that you do not sign a reaffirmation agreement.. If you surrender the vehicle in the bankruptcy, any debt that you owe is discharged at the end of the bankruptcy. Discharged mean that you are no longer legally responsible for the debt nor can creditors attempt to collect it. Hope this helped
Q: Is it much harder to obtain a mortgage ofr a home or a car loan after Bankruptcy?
is it a good idea to declair bankruptcy for about $24,000, and will it be any harder to get a loan or a mortgage after?
A: Unless you had a medical disaster, bankruptcy is going to hang you credit for a good 7 years, making car and home loans harder to get and more expensive IF you get them; and surprise, under the new bankruptcy lay, you may still have to pay a lot of the 24 k anyway.
Q: ONLINE Bankruptcy Car Loan for non-dealer sale?
I refuse to buy from a dealer because I've sold cars before and I know what they're taught to do and I'll end up kicking someone in the teeth. I have a bankruptcy for a 100,000 laser back surgery I had after a car accident. It's prob not much more than a year old, if that.. and I want to get approved over the internet. I want a USED car from a private party seller. I really only need 5000-6000 but everywhere requires a min of 7500
Poopy.
Ideas?
A: Below are highlights of what you can expect when purchasing your first car after bankruptcy, based on my experience.
I think you'll be surprised by a few of the findings...
* Financing a new car is easier than financing a used car.
* New cars have incentives and/or rebates which can lower or eliminate the cash down payment needed to buy a new car. You just use the rebate as the down payment. So, when looking for a new car, it's often best to purchase the one with the highest rebate.
There's absolutely no reason you need to put several thousand dollars down to lease or purchase a new car. The most cash you should need after bankruptcy is $500 to $1,000—and that's if you do everything wrong! Anything more than that and you're either at the wrong car dealer or you want the wrong car.
Do your research. My favorite place to gather this information is Edmunds.com. Not only can you get a heads up on what rates and rebates are offered from every manufacturer.
Car dealers can be as different as a Mac and a PC—just because one car dealer says, "No," doesn't mean you can't be approved for a car loan at a decent rate.
The majority of car lenders don't use normal FICO credit scores to make a lending decision. They use auto-enhanced FICO scores called, FICO Auto Industry Option scores. These scores can be higher or lower than your regular FICO credit scores depending on how you manged you auto credit.
If you've filed a Chapter 7 bankruptcy it's not a good idea to try and finance a car before you're discharged—wait until you receive your discharge letter in the mail from the bankruptcy court...then try to finance a car.
If you've filed Chapter 13, you need trustee approval to finance another car. Make sure the deal makes sense before you approach your trustee. You need to have a good reason for your trustee to approve a new loan. For example, if your family situation has changed and you need a bigger vehicle for your growing family, or your car is a hoopty that just won't run anymore.
Do your homework and interview as many car dealers as possible. When interviewing car dealers do not allow them to look at your personal credit reports until you're ready. Remember, you want to avoid unnecessary credit inquiries. Credit inquiries can lower your FICO credit scores.
Some "subprime" lenders (lenders that charge you higher interest rates than mainstream lenders) could be your only option if you're in a hurry. Normally, I would warn you to stay away from subprime lenders. But if you didn't make your auto payments on time or had a car repossessed or included in your bankruptcy...subprime may be your only choice. However, not all subprime lenders are the same. Some will offer you a decent deal—others will try to take advantage of your situation. So make sure you interview lenders and compare what they offer you. The winner will stick out like a sore thumb.
So there you have it. Not a complete list, but a few nuggets of wisdom before you purchase your next car after bankruptcy.
Q: Can I still file for bankruptcy if I have a car loan out of a credit Union?
I have really bad credit and it keeps on building up because I recently lost my job. I have a car loan at a credit union, and fear that if I file for bankruptcy that they will take my car away.
A: If you’re current on loan payments or own your car, you can keep it, unless your equity exceeds the amounts exempt from liquidation. Under California law, the amount of protected equity varies depending upon what other properties you need to protect.
You should consult an attorney in your area as exemption laws vary by state.
Q: Is it best to reaffirm or redeem your car loan in bankruptcy and why?
I want to keep the vehicle I have financed with America Honda Finance. I was told by my attorney that I can lower my payments. What should I do?
A: What this basically means is if you re affirm the loan, you will continue to pay per the norm even though you have filed for bankruptcy. After the discharge as long as you continue to pay the vehicle loan this will help with re establishing your credit after the bankruptcy filing. As far as lowering the payments, the only one that can do that is America Honda Finance, sometimes with re affirming the loans there's a few dollar difference, but...usually stays the same. Good Luck!
Q: What happens to my car loan if my co-signer files bankruptcy?
I have a car loan of about $10,000. I got this loan about 9 months ago. I am just wondering how it will affect me if my co-signer files bankruptcy.
The car is in my name and she is the co-signer. So with all this new stuff I know does this mean they can come take my car too? Even though I make the payments .
A: Assuming the car is in your name, being one of the co-applicants, you'd have to deal with settling the loan. It's best to talk to a bankruptcy lawyer on this. But as fas far as I know, it's best to have some kind of insurance on this loan that will keep the monthly payments flowing come what may. If nothing works and the bank has it's way, it's within its rights to repossess the car.
Q: Can i get a car loan if i filed for bankruptcy feb 2007?
I want to get a another car, I work fulltime, and I live at home with my parents , so i only pay 200 for rent .I think this is the best time to try to get another car since I have no other bills really, but I have no credit either.I have tried to get a secured credit card but i was denied. Can I still get a loan and where, if I have no credit and filed bankruptcy only a year ago? any advice?
A: i think anyone can get any loan with the right down payment.
Q: Would it be a good idea for someone who has a recent BANKRUPTCY to apply for a car loan?
A friend declared Chapter 7 Bankruptcy last fall before the law change, and his debts were cleared and honestly I cant really say if it is a good idea or not for him to apply for a car loan as his first application for credit of any kind post-bankruptcy. I would tell him to look into credit counciling, but every site I have seen has some kind of a catch or is not entirely unbiased. The loan amount he wants is 15K for a late model used car. His income to debt ratio is excellent now, unlike a year ago when he was not recieving his pension.
Any advice for him considering it is roughly six months since his Chapter 7 bankruptcy discharge and if applying for a car loan is fine at this point?
A: You CAN get credit immadiately after a BK, but the rate usually sucks. You can rebuild your credit and get a better rate, but that takes time. Best thing to do is to start with a couple small credit cards (like a gas card and an overdraft visa) and build from there. Wait on big ticket items because the higher rate will affect you more.
If you HAVE TO get a car now, then bite the bullet and consider a less expensive one for a year or so and then get a better loan.
Q: What happens to your car loan if you declare bankruptcy?
My wife and I have had a really rough streak and have all of our credit cards go into collections. There is really no way I can pay all of this back. We are considering bankruptcy and wan't to include our car in it. We can no longer afford the car payments and the value is far less than our payoff amount (10K less). If I declare bankruptcy, will they repo the car and if so, will I still owe anything or is it written off?
A: If you qualify for chapter 7 and the debt on your vehicle is included and the bankruptcy is discharged, then you will owe nothing on the vehicle but the lender will pick it up.
I have posted a link where you can go and look up all kinds of information on bankruptcy's, you can even take a test to see what chapter you qualify for.
If you do this, don't think it's the end of the world, I went through it back in 2001 and my credit now is better then it was before the bankruptcy, all scores over 750 and can get approved for anything I want at the best rates.
http://www.bcsalliance.com/index.html
Q: Would it be good to refinance car loan when the current loan is reported as Included in Bankruptcy wrongly?
I've got a car loan that was kept through my bankruptcy and I've been paying on for approx two years since now and just realized they reported it as part of my bankruptcy and they will not change(included is said because it was written about in the papers even though it was reaffirmed). I'm trying to now fix my credit up some and would like to know if it will help or even effect at all my credit to refinance it now?
A: I went through this same thing back in 2001 and Ford was not reporting my account, all it took was a simple phone call and they updated the information on the bureaus.
If your lender will not do this, you will have to have proof that you have been making the payments to be approved for a refinance loan.
If you do get refinanced, it will help your credit as long as your lender reports to the credit bureaus.
Q: What kind of interest rate will I get on a car loan with a bankruptcy on my credit report?
Filed for Chapter 13 in 2004, will make my last payment to the trustee in 1 month and am in need of a new car. What kind of interest rate will I be looking at? How much of a down payment will I need? Is it possible to get a brand new car instead of used? Any info is appreciated!
A: You might be able to negotiate a rate that drops each year.... if you make all your payments on time. I could picture a dealer giving you 9.9% first year, 8.9% 2nd year, 7.9% 3rd year.
There is also a small chance that a new car dealer might wait 1 month until you have made your last payment to the trustee and give you the special Zero Percent interest rate just to move a car off the lot. You would have to buy one of the least popular cars on his lot. One that has been sitting for 11 months unsold. No one is buying the big SUV's.
Q: Will I ever get a car Loan with a bankruptcy?
I just went bankrupt, my piece of crap car is dying, I need it to get to work. Will I ever be able to get a loan for a car again?
A: Hi Mike,
After bankruptcy a good way to re-establish your credit is with an auto loan. You would need a dealership that specializes in bad credit auto loans. Understand, you will have to pay a higher interest rate on your loan. This is the only option with a bankruptcy if you want to purchase a car and also reestablish your credit. Good luck
Q: My dad is a co-signer and filing for bankruptcy. How will this affect my car loan?
My dad is a co-signer on my car loan (in Kansas). I still owe over $2,000. My parents are looking for a bankruptcy lawyer.
I pay my car loan on time, but I don't think that I can refinance in my name only...My credit went from good to poor over the last six months.
A: It doesn't change anything. A creditor could ask the court for your car to be sold. The proceeds would be used to pay off Dad's creditors.
A judge would understand that it really is your car. She would not order you to sell the car..
Q: Bankruptcy! Car loan ($8,000) no other assets/liabitilies. $50,000 in CC debt.?
Car loan ($8,000) no other assets/liabitilies. $50,000 in CC debt. Interest rates on the cards are now averaging about 30% because of late fees, etc.
Should I file? I am never going to be able to repay in current situation.
A: There is no one answer to this. Under the new bankruptcy laws, you are required to go through credit counseling where your debt, assets, income, etc. will be reviewed to decide if you qualify for Chapter 7 or Chapter 13.
Make an appointment with a bankruptcy attorney. He will direct you to an approved credit counselor in your state. Don't go out and hire one without making sure they are on the Department of Justice approved list first.
Keep in mind that all the late payments are going to be on your credit file for the next 7 years. The bankruptcy will be on your file for the next 10 years.