Anyone used a Capital One blank check before filing?

[opusx]

Hello! I'm new here, and really confused by this whole process so far. We're trying to get a chapter 7, but the attorney says our budget looks a little padded and the trustee may push us into chapter 13. We asked if it would be okay to buy a car now in case we go 13 since it will be too late then to add that to our budget. The cars we have are old and have major issues. We have no car payments, nor are we including any car loans in our bk. He said yes that we could keep a reasonable car payment so we took an extra week before filing to try and get a reliable car. Well our payment history is perfect with creditors, but our revolving debt is enormous and getting credit is next to impossible. We finally got Capital One to send us the blank check deal and I got it today. We even found a vehicle to fit all the criteria they outlined - nothing special just a 2005 Dodge Grand Caravan (we have 5 kids - lol!). But when I read the fine print on the last page of the loan documents, it says this:

DEFAULT: If (1)...(2)...(3) you initiate or have initiated against you any bankruptcy or insolvency proceedings (4)...

And in the event of a default, they will come and repossess your vehicle. Then we'd really have a mess on our hands.

They don't say if this applies if they are not included in the bankruptcy so I'm afraid to touch this thing with a 10 foot pole!!!!!! Any advice?

Thank you so much for any input! I really do feel lost!

[aces67]

Ask your lawyer just to be sure.

Good Luck!

[LimpDisc]

We purchased a car using Capital One blank check on August 18, 2009. We plan on filing CH7 on December 08, 2009 and really don't expect any problems. We also have our other car financed with Capital One using the blank check program.

I showed the paperwork from Capital One to our Attorney and he didn't think it was going to be an issue. I had the exact concerns as you, so I wanted to show him that specific part of the blank check paperwork.

I also spent a lot of time researching this and it doesn't look like Capital One will be coming to get my cars. They're in the business of financing cars, not doing repo work and reselling cars at auctions.

As long as I continue to make the payments on my cars, I expect them to be in my driveway each morning.

Good luck to you!

[LimpDisc]

My blank check paperwork also says "may" repossess the vehicle, not "will" repossess the vehicle.

These T&C's are probably standard wording in just about every car loan.

[jribe]

do you know what your fico was when you applied? Would you mind sharing what your interest rate was?

We really need to get another car; but i only tried through road loans- and it was 26% interest (yikes!).

I think my FICO is around 576...

Thanks