Buying Before Being Repo'd

[ConfusedinOC]

My wife and I have two vehicles (both are one year old) with GMAC Financing. We just filed CH 7 and plan on riding through with both vehicles. I have been thinking that once we are discharged of getting rid of my vehicle and buying a dependable used vehicle with a less monthly payment.

My question is will GMAC be reporting the current loan if I ride through? If I walk in to the dealer after discharge will they see the vehicle in my credit report and say I can't finance another car? I would like to secure the used car before having the current repo'd.

[StartingOver08]

You ae describing a surrender, not a ride thru.

Riding thru means you do not reaffirm and you continue to pay the payment on time.

Unless I misread your post, you plan to not reaffirm (that's a good thing) but you also plan to not make the payments and purchase another vehicle after your BK. That is considered a vehicle surrender. It certainly makes sense to surrender your vehicle if the payments are too high for your new, post-BK budget.

To answer your question about GMAC credit reporting, most of the time the lenders will not report your payments. They report the loan as iib and zero balance. iib = included in bankruptcy. Some lenders will report vehicle payments, but that is ususally if the loan is reaffirmed. If you are surrendering, definately do not reaffirm the loan!

[ConfusedinOC]

I plan not to reaffirm anything from the mortgage to the two vehicles. The one vehicle I want to surrender has a high payment with a bunch of negative equity. My concern is trying to get a car loan either before or after I surrender the current car, what would be best?

[StartingOver08]

If you search through the posts, most people report that it is easier to obtain vehicle financing after their discharge. Some people have good credit right up to filing and have taken out loans before the BK. IMO, if you have already filed, then wait until you are discharged and have surrendered your vehicle before you get your new loan.