Comments on: Car loans while in bankruptcy http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/ How to get an Auto Loan with Bad Credit - Auto Credit Express Sat, 07 Nov 2009 22:15:45 +0000 http://wordpress.org/?v=2.6 By: Mike http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-2722 Mike Thu, 02 Jul 2009 01:26:12 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-2722 I don't have a comment, but I have a question related to this topic. I filed for Chapter 7 bankruptcy (pro se) about two months ago. On my statement of intention, I indicated "reaffirmation" as it pertained to my car loan. At the time I filed, I was a month behind on my payment. I did intend to rectify the default to bring the loan current, but a day after my 341 meeting, the creditor filed a motion to lift the automatic stay. In an attempt to slow down any potential repossession attempts (yes, I'll admit it), I drafted my own reaffirmation agreement and sent it to the court, the creditor, and the creditors' attorney. They've since filed an objection to the reaffirmation (go figure...), and the hearing is scheduled for the end of the month. I realize the agreement in unenforceable because the account is in default (now by three months). Here is my question - what do I do? I know that if I have any chance to hang on to the car, I need to bring my account current, but it's almost impossible to come up with three months' worth of payments at once. Would the creditor accept anything other than one lump sum payment to bring my account current (i.e., a partial payment per week)? Does anyone have any experience with this? I have an older (but nice) car that has a retail value of about $6,000 (actual value of about $3,000), so I'm fairly sure the creditor isn't exactly anxious to send the repo man out after a 10 year-old vehicle of that value. Does anyone have any experience with this type of situation? Any advice would help! Thank you! I don’t have a comment, but I have a question related to this topic. I filed for Chapter 7 bankruptcy (pro se) about two months ago. On my statement of intention, I indicated “reaffirmation” as it pertained to my car loan. At the time I filed, I was a month behind on my payment. I did intend to rectify the default to bring the loan current, but a day after my 341 meeting, the creditor filed a motion to lift the automatic stay. In an attempt to slow down any potential repossession attempts (yes, I’ll admit it), I drafted my own reaffirmation agreement and sent it to the court, the creditor, and the creditors’ attorney. They’ve since filed an objection to the reaffirmation (go figure…), and the hearing is scheduled for the end of the month. I realize the agreement in unenforceable because the account is in default (now by three months). Here is my question - what do I do? I know that if I have any chance to hang on to the car, I need to bring my account current, but it’s almost impossible to come up with three months’ worth of payments at once. Would the creditor accept anything other than one lump sum payment to bring my account current (i.e., a partial payment per week)? Does anyone have any experience with this? I have an older (but nice) car that has a retail value of about $6,000 (actual value of about $3,000), so I’m fairly sure the creditor isn’t exactly anxious to send the repo man out after a 10 year-old vehicle of that value. Does anyone have any experience with this type of situation? Any advice would help! Thank you!

]]> By: Steve Cypher http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-2265 Steve Cypher Wed, 03 Jun 2009 19:17:10 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-2265 Kevin, Under a Chapter 13, you are only allowed to take on additional debt with a court order which includes the approval from the trustee. Using your current car as a trade in would mean paying off whatever balance the court determines that you owe on it. Since the new car was not part of your original filing, it cannot and will not be included under your chapter 13 and you will be required to pay for it outside of the bankruptcy (providing you can find a lender). Kevin,
Under a Chapter 13, you are only allowed to take on additional debt with a court order which includes the approval from the trustee. Using your current car as a trade in would mean paying off whatever balance the court determines that you owe on it. Since the new car was not part of your original filing, it cannot and will not be included under your chapter 13 and you will be required to pay for it outside of the bankruptcy (providing you can find a lender).

]]> By: Kevin King http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-2264 Kevin King Wed, 03 Jun 2009 17:03:15 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-2264 In am in a chapter 13 right now and my question is while in chapter 13 is it possible to trade the car i have now that is under my charpter 13 now for a new car. If so will this new car put put under my chapter 13 or will it be something I have to pay out of pocket. In am in a chapter 13 right now and my question is while in chapter 13 is it possible to trade the car i have now that is under my charpter 13 now for a new car. If so will this new car put put under my chapter 13 or will it be something I have to pay out of pocket.

]]> By: Jack Robert http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-952 Jack Robert Tue, 10 Feb 2009 22:36:23 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-952 That was a great blog. Most blogs are not even worth reading. That was a great blog. Most blogs are not even worth reading.

]]> By: Steve Cypher http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-313 Steve Cypher Fri, 31 Oct 2008 16:06:37 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-313 John, It may be possible. First of all, you need to be upfront with the dealer about your situation. If the court records are on the PACER site and the dealer can print a copy of the records and send them to the lender, then there are some lenders that will consider your application. The lender may also need to print the records from the PACER site, as well. If the court records are not on the PACER site, chances are you will have to wait for the discharge papers before applying for a loan. The second issue is your reaffirmed vehicle and how much equity you have in it as well as how much cash you have for a down payment on a new vehicle. John,
It may be possible. First of all, you need to be upfront with the dealer about your situation. If the court records are on the PACER site and the dealer can print a copy of the records and send them to the lender, then there are some lenders that will consider your application. The lender may also need to print the records from the PACER site, as well.

If the court records are not on the PACER site, chances are you will have to wait for the discharge papers before applying for a loan.

The second issue is your reaffirmed vehicle and how much equity you have in it as well as how much cash you have for a down payment on a new vehicle.

]]> By: John Spencer http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-310 John Spencer Fri, 31 Oct 2008 00:47:50 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-310 My chapter 7 has been in meeting already, i have been waiting for my discharge paper for over 3 months and am in dire need of a newer truck. Is it possible for me to trade in my reaffirmed truck in on a new one, without having posation of my discharged papers? My chapter 7 has been in meeting already, i have been waiting for my discharge paper for over 3 months and am in dire need of a newer truck. Is it possible for me to trade in my reaffirmed truck in on a new one, without having posation of my discharged papers?

]]> By: Steve Cypher http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-190 Steve Cypher Mon, 22 Sep 2008 17:14:38 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-190 Ann, A chapter 13 bankruptcy would require an order to incur additional debt from the trustee before you could get a loan. If you are in a Chapter 7, there are a few lenders that would consider a loan, provided there are no pending claims against your account on the PACER website. You would have a much better chance, and many more lenders would consider you, after the December 5th discharge. Ann,

A chapter 13 bankruptcy would require an order to incur additional debt from the trustee before you could get a loan. If you are in a Chapter 7, there are a few lenders that would consider a loan, provided there are no pending claims against your account on the PACER website. You would have a much better chance, and many more lenders would consider you, after the December 5th discharge.

]]> By: Ann Baker http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-166 Ann Baker Mon, 15 Sep 2008 21:13:13 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-166 My bankruptcy will not be final until Dec. 5th, 2008,if it possible for me to trade in my car and get another one? My bankruptcy will not be final until Dec. 5th, 2008,if it possible for me to trade in my car and get another one?

]]> By: Erin http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-73 Erin Mon, 14 Jul 2008 20:45:17 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-73 Hello! We are in the situation that we gave up one of our cars in the chap 13, them knowing that we needed to get another vehicle. So they should allow us to get a replacement, correct? Also, I spoke to my lawyer about trading our Trailblazer as well due to the rising gas prices. We can no long afford to just run to the store for diapers because we live in the country. She said that we will be able to do it, and now that we have found a vehicle, she will no longer return my phone calls, which is very frustrating. Do you see a probelm with either of these situations? We DO need 2 vehicles because my son has a disability and I have to be able to get him back and forth to his doctor appointments. Sorry if this seems like an odd question... : ] Thanks in advance. Hello!
We are in the situation that we gave up one of our cars in the chap 13, them knowing that we needed to get another vehicle. So they should allow us to get a replacement, correct? Also, I spoke to my lawyer about trading our Trailblazer as well due to the rising gas prices. We can no long afford to just run to the store for diapers because we live in the country. She said that we will be able to do it, and now that we have found a vehicle, she will no longer return my phone calls, which is very frustrating. Do you see a probelm with either of these situations? We DO need 2 vehicles because my son has a disability and I have to be able to get him back and forth to his doctor appointments. Sorry if this seems like an odd question… : ] Thanks in advance.

]]> By: Steve Cypher http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-70 Steve Cypher Fri, 11 Jul 2008 13:53:59 +0000 http://www.autocreditexpress.com/blog/2008/06/03/car-loans-while-in-bankruptcy/#comment-70 Travis, There is certainly no problem buying a car out of state. I did the exact thing two years ago. Most national lenders such as GMAC and Ford Motor Credit will finance you in any state. The one issue that may come up is sales tax. Depending on the situation, you may pay sales tax in the state in which the vehicle was purchased and then, depending on your local rate, you will need to come up with the difference when you register the vehicle in your home state. My situation was different. When I purchased the vehicle in Iowa, I was not charged any sales tax at the time of delivery. Instead, I received an in-transit permit good for 30 days - the time alloted to bring it back to Michigan, pay the sales tax, and register the vehicle in my home state. Since I didn't want to come up with the cash for the sales tax, I had the dealer include it in the price of the vehicle. They then cut me a check for the amount of the sales tax and I brought this check with me when I had the vehicle registered to cover the tax that they collected at that time. Travis,
There is certainly no problem buying a car out of state. I did the exact thing two years ago. Most national lenders such as GMAC and Ford Motor Credit will finance you in any state. The one issue that may come up is sales tax. Depending on the situation, you may pay sales tax in the state in which the vehicle was purchased and then, depending on your local rate, you will need to come up with the difference when you register the vehicle in your home state. My situation was different. When I purchased the vehicle in Iowa, I was not charged any sales tax at the time of delivery. Instead, I received an in-transit permit good for 30 days - the time alloted to bring it back to Michigan, pay the sales tax, and register the vehicle in my home state. Since I didn’t want to come up with the cash for the sales tax, I had the dealer include it in the price of the vehicle. They then cut me a check for the amount of the sales tax and I brought this check with me when I had the vehicle registered to cover the tax that they collected at that time.

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