What are my chances of getting approved pre-discharge?

[grandcru]

My 341 is this week (ironically on my birthday). I've been eyeing a cherry, ultra low mileage Mini Cooper that just hit the used market (acutally got to see it before the dealer listed it online). I test drove it yesterday and its solid. I'm going back this week to have a mechanic inspect it. If everything checks out, I'd like to make an offer on it by next weekend.

Are there any lenders that work w/ borrowers pre-discharge? The dealership is part of the Capital One auto finance program but I'm certain I won't get approved. I've tried several CUs already only to get denied.

Without getting my hopes up, I'm almost certain this is *the* car. The last time I stalled on a low mileage Mini, it sold before I had a chance to go back.

[justplaintired]

How much are you borrowing before you case has even begun? I don't know about being approved anywhere at this point, but are you honestly prepared to have a high interest rate high payment loan right now?

[Draky]

I actually am wondering the same thing. I just filed and have my 341 next month. My wife and I are surrendering both cars due to high millage and owing several thousand more then they are worth. We do need at least 1 car, however, to be able to live life (ie, go to the store, run the kids to the hospital in an emergency/apointments, ect) and get to work. Any suggestions on this?

[oldhack]

Creditors have 60 days to object to or challenge your filing after the 341 meeting. I doubt that very many non-distress lenders are willing to approve a loan to you until that 60-day deadline has passed.

[grandcru]

How much are you borrowing before you case has even begun? I don't know about being approved anywhere at this point, but are you honestly prepared to have a high interest rate high payment loan right now?

I'd be looking to borrow $13-14k and throw in an extra $3k on my own. This car would replace the two I currently own so once I sell them, I'd be close to paying off the loan.

[teacher]

I'd be looking to borrow $13-14k and throw in an extra $3k on my own. This car would replace the two I currently own so once I sell them, I'd be close to paying off the loan.

I might be saying something stupid here......but you know that you can't sell/transfer property while in an active BK, right?

[StartingOver08]

I'd be looking to borrow $13-14k and throw in an extra $3k on my own. This car would replace the two I currently own so once I sell them, I'd be close to paying off the loan.

Did you exempt these cars in your BK? Your district must have very generous exemptions for you to have kept $3k in cash plus two cars that you own.

Purchasing a car before your 341 is not advised at all. Really to be safe, it is best to wait until you are discharged.

[jadams]

It's possible to get approved before discharge, but at the worst possible terms.

If you can wait till post-discharge, dispute/correct all your accounts to proper IIB reporting on your credit report, and let a few months of "rebuilder" usage of something like an Orchard Bank card report -- you'll have a much higher score for better rates.

The longer you can wait the more time you have for your score to improve (and to save for the downpayment).

Is the car really that unique of a deal that it's worth a 20%-ish interest rate -- and something similar or better won't be available in 6-8 months?

[Rahaton]

Another thing to keep in mind is that if you are after a deal, the terms of the loan will kill any financial win you could get. Really the only people willing to lend to someone in your situation are people looking to take advantage of the fact you have no other options. You would be better off to just wait and then pay more for a similar car that was not as much of a deal.

[grandcru]

Did you exempt these cars in your BK? Your district must have very generous exemptions for you to have kept $3k in cash plus two cars that you own.

Purchasing a car before your 341 is not advised at all. Really to be safe, it is best to wait until you are discharged.

Everything was exempt. They are 'niche' cars (two seaters) that don't have high value according to blue book but an enthusiast would be willing to pay a little bit more.

Once evrything is discharged and 'the dust settles' would I be able to sell the cars w/o going against any bk stipulations?

Also, would it be a good idea to have someone co-sign and refinance later exclusively under my name? My gf is expecting in December, thus the urgent need for a car with backseats.

[bxphae]

Just FYI, expect to buy a really slim babyseat, the car will barely fit baby car seats in the back since the front seatbacks hardly slights foward to access the rear seats....


I know this from personal experience. Mini's aren't rare, just make sure you really think this through. Do you really want your baby to ride in a stiff, noisy car?

[ska]

I need to refinance my leased car by the end of this month and my case has not closed yet. My 60 days were up on 9/11/09 and I am still waiting. I applied with my CU "denied"! Due to recent BK and the credit report states my mortgage deliquent, which it isn't. Argh! I had to send my mortgage payments to the lenders attorney and he held them until the beginning of September. This is the only thing I can think of as to why my credit report is stating deliquent. I think I am in a no win situation. I need my car, if I turn it in I will owe over $2,000 in mileage and minor exterior damage. I had planned on keeping the car since I first got it. Humm... so bummed.