Buying/Leasing a car after BK

[LSUTiger32]

Okay, please don't think I am too crazy and sorry inadvance for being so long winded, I have a lot on mind and its been a really frustrating 3 years for us.

We would like to dump our leased vehicle (have not made September's payment) but otherwise current. We did not sign reaffirmation agreement, our attorney told us to look around to see what our options are after our 341 in August. We have talked with a few dealers and they all suggest that we wait until after discharge. Why I don't know. We have been to the same dealer twice and actually took a few vehicles and like 2 they are both 2007's, one has 40,000 the other has 25,000 miles. Interest rate on both was 18.95% not sure of the term, with $500.00 down. Payments are roughly what we are paying on the lease. Why is it better to wait for the discharge, we are scheduled for October 18 (my wedding anniversary)

We filed Chapter 7 since I was laid off in 2009, I was able to find another job within a few weeks, but for alot less pay. Essentially we could no longer afford the credit card payments and have not been able to pay for them for a very a long (6-8 months at least prior to filing). Our financial situation is no better since we have filed, other my phone does not ring like crazy any longer. Bottom line I need to find a better paying job roughly was I was making before I was laid off would be great I have been persistent with doing so, but nothing is happening. I recently applied for a position with my previous employer who laid me off in October 2009. Not sure how that will pan out as they do a credit check, I explained the situation to the office manager, she also knew my financial situation somewhat when I worked there (had two house payments, house finally sold, has to do short sale, etc.) and she totally understood where I was coming from, as she filed several years ago. I just hope its not held against me for the position.

I would love to sell our house and move for something cheaper, but like everyone else no one is making squat on their houses. (I also think me all of my neighbors are nuts), but where would we go, mostly who would give us a loan. We are renting people as you don't like the home is really yours. I would not want to explain anything to our kids (6 & 10) either as well as our family members. No one in our families know we have filed, my in laws would understand my family would not, my siblings would never let hear the end of it and the jabs would be endless.


Any comments or suggestions are greatly appreciated. Thanks for listening.

First.....If you are filing and have the chance to get out of the car lease, get out. However.....DO NOT go and buy another one at 19% interest!!!!! You are saying in this post that you cannot really make the payments and that your financial situation is still going to be nip and tuck even after the discharge. You have to sacrifice something. Dump the house or the car but you know you can't keep it all right now. You should seriously consider dumping it all and getting a clean start, but I certainly understand wanting to hold on to the house. When you get another better paying job, then you can consider a newer car but you need to get out of a car payment for right now. It's going to mean driving a older used car for a while, but I don't really see where you have a choice.

Second....DO NOT worry about what other people think. You would think your siblings would be supportive of you, but forget about them if they are not. Don't let other people dictate your financial future. I totally understand about the kids, mine are the exact same age but remember they will survive no matter what you decide. Just keep loving them and they will be fine. The best thing you can do for them is get yourself right now financially, so that they can go to college later. That will mean more to them than what house they lived or what kind of car you drive for a year or two while you re-group. Believe me, I was there and now we are making some serious headway towards a promising financial future.

Whatever you decide to do......good luck and I hope it all turns out well!

[Rickfox911]

Anyone heard of getting a car loan restructered to fair market value after or during a BK through the same lender? I'm upside down probably about 10K on my truck and my lawyer that I only have retained right now, said he could do that. I have no idea how anything works for the BK stuff, I just know that I pretty much have to do it now that my wages are being garnished from divorce. Beginning this process I hope is the worst.

[backtoschool]

Cramming down a car loan can only be done in a chapter 13. In a chapter 7 you either have to reaffirm the car loan, or give the car up as is.

[katt3344]

Our discharge was in 03/2009 and we bought a used car in 01/2010 and the dealer financed us thru BMW at a rate of like 14%. But we then we came home and went online and applied for a refi thru Captial One and got 8%, which dropped our pymt like $100.00/mon. Never had to make a pymt thru BMW, just thru Capital One. And last weekend we bought a used car thru CarMax and they were only offering like 11.25%, but again, we applied for a second refi thru Cap One and this time got 6.25%. They have good rates for those with credit issues including BK. Also, we found the refi rate is better than the actual original loan rate thru them. However, they will only refi/finance 30K and the terms as far as years and rate are based on the year of the vehicle as well as credit.