Car loans DURING bankruptcy?

[jojuvan]

Are there any lenders out there who will approve you before bk actually is discharged? We REALLY don't want to keep our van (it's a lease) and we are majorly upside down. But we have no other transportation. We do have this one dealer near where we live, but they want us to put a lot of money down, and we don't have any to put down. Maybe around $500, but that's it. Our only other option would be to wait until after the discharge and trade the car in, but that would be bad because we have so much negative equity (about $6,000). Any suggestions?

[disgusted1]

Buying a car during chapter 13...

I'm kind of in the same limbo state as some others here. I see people in different states of BK getting vehicles every day, but when I mention it to my wife she always says,"we can't until the BK is discharged". So much for a positive attitude, eh?

I have just 4 payments of $441.60 left to go on my 2001 F-150 pickup, and NEVER again will I do that for 66 months. I paid 29 grand for a 15K vehicle.

She is driving an ugly old 1993 Chevy S-10 2 wheel drive, and where we live 4X4 is the only option because of the winters. Plus, all I do is work on the stupid thing every weekend to keep her going. Last month it was a new gas tank, month before it was a tune up to eliminate a skip, but ended up replacing distributor. Funny how you can muster up the 2-300.00 a month to buy parts to keep going, but can't make a payment...

I'm looking at finding a $2,500-$3,000.00 maximum 4X4 vehicle for her to drive with a small payment for a short term. She suggested we "mentally make a payment" meaning put away about $200/month starting now so we have cash by winter to buy something. I agree with the philosophy, but when you do the math on that, we'd save only $2,000.00 by December, and that's cutting it a little too close to the bad driving season for me.

I am trying to give her a safer vehicle to drive without piling concrete blocks in the back, and studded snow tires all the way around a 2 wheel drive pickup. Plus the right door and window doesn't open, the radiator leaks, needs an exhaust system, and it's butt ugly.

Not trying to live an extravagant lifestyle...just trying to make it easier and safer for the family, that's all.

Any suggestions as to where one might look for an auto loan while in chapter 13 BK?

[Frshstart09]

I'm in WA state and have received an auto loan in active bankruptcy. Evidently it's a specialized niche lender called Prestige Finance. Interest rate decreases up to 2% a year with on time payments. Starting percentage was 19.5 (ouch) but at least it will decrease through the life of the loan (lowest 14%). I'm giving up my current vehicles and downsizing so this was a good deal in my situation. I don't know if this lender is unique to WA or not...

[Flamingo]

I'm kind of in the same limbo state as some others here. I see people in different states of BK getting vehicles every day, but when I mention it to my wife she always says,"we can't until the BK is discharged". So much for a positive attitude, eh?

I have just 4 payments of $441.60 left to go on my 2001 F-150 pickup, and NEVER again will I do that for 66 months. I paid 29 grand for a 15K vehicle.

She is driving an ugly old 1993 Chevy S-10 2 wheel drive, and where we live 4X4 is the only option because of the winters. Plus, all I do is work on the stupid thing every weekend to keep her going. Last month it was a new gas tank, month before it was a tune up to eliminate a skip, but ended up replacing distributor. Funny how you can muster up the 2-300.00 a month to buy parts to keep going, but can't make a payment...

I'm looking at finding a $2,500-$3,000.00 maximum 4X4 vehicle for her to drive with a small payment for a short term. She suggested we "mentally make a payment" meaning put away about $200/month starting now so we have cash by winter to buy something. I agree with the philosophy, but when you do the math on that, we'd save only $2,000.00 by December, and that's cutting it a little too close to the bad driving season for me.

I am trying to give her a safer vehicle to drive without piling concrete blocks in the back, and studded snow tires all the way around a 2 wheel drive pickup. Plus the right door and window doesn't open, the radiator leaks, needs an exhaust system, and it's butt ugly.

Not trying to live an extravagant lifestyle...just trying to make it easier and safer for the family, that's all.

Any suggestions as to where one might look for an auto loan while in chapter 13 BK?

I highlighted a sentence in your first paragraph...where do you see this everyday - do you work for a car dealership? Finance company? If you see this everyday you should know where look for financing while in BK. It is possible to get financing but expect to pay a very high percentage and if you are in Chapter 13, you will need trustee permission to do so. There are certain lenders who are BK friendly (high interes) and if you had a previous loan with a lender (i.e., Ford Credit) that was paid on time, that works to one's advantage also.

[Looking4ward]

I'm in WA state and have received an auto loan in active bankruptcy. Evidently it's a specialized niche lender called Prestige Finance. Interest rate decreases up to 2% a year with on time payments. Starting percentage was 19.5 (ouch) but at least it will decrease through the life of the loan (lowest 14%). I'm giving up my current vehicles and downsizing so this was a good deal in my situation. I don't know if this lender is unique to WA or not...

I'm in WA as well and also went through Prestige.

I'm in the 60 day club, so my BK is still open. The car I got is nicer and less expensive than the car I included in the BK. Just got it this weekend, and I'm loving it.

Best to you, Jojuvan!

[HHM]

If you are surrendering a car, you can use 722 Redemption to get a loan during BK.

https://www.722redemption.com

[dogbone33]

Nobody would loan to us in open bk. Even those places that say they would... We just got a car almost 3 months past discharge. Had to put 1500 down and we have about a 20% interest rate, which we will refi next year. We had really good credit before we filed and had no repos or anything and our scores are in the mid 600's.. My CU also wrote up a new loan for us on my Jeep and trailer so it would help our credit. We will most likely refi with them. We had no choice....But it's an 07 Fusion with 8500 miles...