post 13 vehicle finance?

[brokeNconfused]

i have looked around here and find most posts about chapter 7 loans. I should confirm soon on a 13 for 36 months. Once the 36 months are over.. how long will i expect to pass before i should be able to get a good vehicle loan?

I will be paying current vehicle and house payment outside of the 13.

i will still have the loan for another year on this car, but will be looking for another one once i am finished. I dont want to be embarrased with applying for loans if they are going to laugh me out of the dealership. I will only buy a new car this time to avoid breakdowns and headaches..

[justbroke]

The rule of thumb is 2 years post-discharge. Since your Chapter 13 is for 36-months, you should be able to get moderate loans in 60-months. That's not to say that other predatory lenders (for lack of a better term to describe them) may come out of the woodwork right after discharge.

There are even companies which will get you a car loan during your Chapter 13 (with Trustee approval). So, it can be done.

[brokeNconfused]

so two years after a 13.? from reading it seems about the same with a 7. thought lenders looked more positive with a 13 since payments get made. Am i wrong?

[justbroke]

so two years after a 13.? from reading it seems about the same with a 7. thought lenders looked more positive with a 13 since payments get made. Am i wrong?

From what I know, it depends on the individual. If your credit score is decent (above 600), that will be more favorable than a credit score at 530, and one below 530... solely an example.

Again, there are lenders who will lend to you, with Trustee approval, during your 13 under the right conditions.

[brokeNconfused]

i dont plan on it until after the 13 . i dont want to get into debt too soon. lol

[Cali]

I think many lenders see BK as BK regardless of the Chapter.

[Flamingo]

so two years after a 13.? from reading it seems about the same with a 7. thought lenders looked more positive with a 13 since payments get made. Am i wrong?

Broke - Depending upon how you handle yourself during your Plan years and also how you handled your credit prior to filing is a big key as to financing a car during your Chapter 13 or after discharge. We went through the process and learned a lot about how BK is viewed from the auto financing folks, our attorney and our broker after we refinanced our house also during our Chapter 13 to buy out early (we are old law). Prior to discharge, we obtained a GMAC 0% 4 year auto loan for a new GMAC which was the advertised promotion at that time (April 2006). The finance manager advised us it was because we handled all payments well during our Plan and also due to our credit BEFORE filing - i.e., we had a previous GMAC loan for a Chevy in the mid to late 90's, paid off in full and never late. All that worked to our advantage and we were eligible for the promotion rates given to folks with better credit. Now, that may not work for everyone. Also, as you state, lenders do view folks who file Chapter 13 better over those that file Chapter 7 and I was advised that by two brokers, an attorney and bank financial reps. The reason being is you present a record of paying back some or all of your debts instead of dumping it all in a Chapter 7 (no offense to those filing Chapter 7 in here but that is what I was advised). The preference for those in 13 is also shown by the CRA's in that a Chapter 7 stay son your credit for 10 years and a Chapter 13 stays on for only 7 (from date of filing).

If you had a prior good and paid off loan with a car lender (i.e., Ford Credit, GMAC, etc.), that will work in your favor in obtaining a car after a Chapter 13. But remember, it may not be a magic bullet for you. Some people just cannot get credit at all after either a Chapter 13 or 7 and time is the only answer for them as to establishing new credit and showing a record of being saavy with their money.

[Cali]

Flamingo - I was told that dealerships only care about the discharge part, it didn't matter the type of Chapter you filed.

[Flamingo]

Flamingo - I was told that dealerships only care about the discharge part, it didn't matter the type of Chapter you filed.

That's one of the marvelous things about this forum - you will find people have been told and advised different things in different areas of this country...BK is BK, but it appears from advice I have received and heard and my own experience is that creditors/lenders view Chapter 13 people differently than Chapter 7 people in various ways and in a much more positive light due to the fact of the pay back record. All dealerships are not the same so one just has to do the best they can as to their BK and getting the best financing possible.

[brokeNconfused]

well i had excellent credit before this. will be paying house and car outside plan. I hope this helps keep my score up.

[Cali]

Flamingo - I totally agree we all have to do our best w/ what we have to work with.

It would be wonderful to have one set way. LOL

[brokeNconfused]

im just looking to get a loan.. i dont care if the interest is at 0 but it would nice to keep it under 10.

[krielly]

After you have been in your 13 for a while and are on time with all payments - plan and outside payments, you could inquire with the current lender you have for your existing car loan.

They will probably loan to you again after discharge if you stay current w/everything over the life of your plan.

K