Credit and car loan after 341?

[mikemike]

OK im curious. My 341 meeting is Oct 21st and i am super excited. Now i want to be prepared and start rebuilding my credit so i want to have a game plan ahead of time.

Now is it ok to apply for credit cards after the meeting? Or a car loan? Do i have to wait until the 60day discharge? I assume it is best to wait. I see people applying for credit right before bk i dont understand that.

[Amy26]

It is generally not an accepted practice. You are not allowed to take on additional debt before you are discharged without the Trustee's approval. And applying for credit before you are discharged can be potentially a bad thing.

I know some people have done it. And there are car lenders that will send you offers that say "no discharge required"....

But, even if you did those things... you may be shooting yourself in the foot. Post discharge, my credit score jumped like 50 points in one day just from it showing "discharged". If you try to get credit before you are discharged your rates are likely to be ungodly horrible.

I had a difficult time getting a decent car rate AFTER I was discharged much less before hand. The only places that are going to give you a car loan before you are officially discharged are probably not places you want to be doing business at anyways.

[jcregs28]

Amy 26,

Can I ask you where you got your car loan post discharge, and what loan amount you were approved including your interest rate? I am going 2 months post discharge 8-24-09) and there is a local dealer who said he can finance me (i'm looking at trying to finance $16K with about $2K down, scores around 600). I would greatly appreciate it!

jcregs28

[NoMoreCards]

I was advised by my attorney to apply for a car loan if needed (to turn in my lease with the BK), after the 341 hearing. I did apply and was approved at a 23 or 24% rate. I decided against that and instead bought a car for 3K cash (borrowed part of the money from my parents). Although my scores are still high (660-680), the interest rate was too ridiculous to even consider for me, because of the active BK.

I just wanted to share my experience with this topic.

[Amy26]

Amy 26,

Can I ask you where you got your car loan post discharge, and what loan amount you were approved including your interest rate? I am going 2 months post discharge 8-24-09) and there is a local dealer who said he can finance me (i'm looking at trying to finance $16K with about $2K down, scores around 600). I would greatly appreciate it!

jcregs28

I was financed at a Ford dealership through Americredit. I purchased a new 2010 Ford Edge with 1k down and a 17.9% interest rate. My credit was free from negative information before I filed so I have a solid credit history. My score is around yours. And I did this just a few days after I was discharged.

[mikemike]

thanx amy..yea ill just wait until this is all over with.