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    #1

    car laon

    Per the advice of our attorney, we car shopped this past week for a a newer car. We have not filed yet. I felt like such a "loser" applying for credit One car place say's, you have good credit, right? UGHHH! Our last car we bought, we paid cash for and it still runs....so, if the loan does not go through tomorrow, we will just be driving on 2 old cars for quite a few years longer.

    If the loan does go through....anyone know how long we would need to wait before we file? Maybe there is no minimum time...just feels really weird! I know we will be paying, but at much less interest is my understanding.
    Tags: None
    #2
    As you indicated, there is no set timefame. Most will say make a couple on time payments to show good faith, but that isn't a set rule, just a guideline.

    We bought a new to us car, paid on time twice, then filed (included it in the plan and knocked the 12.5% interest rate down to the "Till" rate).

    Hope that helps!

    Comment

      #3
      OK- that is about what we thought. What is the "till" rate?

      Thanks

      Comment

        #4
        "Till" refers to a landmark case where the Court ruled that a different interest rate that can be applied to personal property that is completely paid off over the life of the plan. Till is based on the Wall Street Journey prime lending rate, plus a risk factor of 1 to 3%. So, if the prime is 3%, Till is 4% to 6%.

        It's nice to be able to change car loans down to a reasonable rate. The auto lenders hate it, and may even complain, but Till is Till!
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment

          #5
          It might vary by district... For where I am, it is 5.5%.
          Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
          (In the 'planning' stage, to file ch. 13 if/when we have to.)

          Comment

            #6
            Originally posted by SMinGA View Post
            It might vary by district... For where I am, it is 5.5%.
            Yes, some Districts "publish" their pre-calculated Till rate each Month to make it easier for debtors. I know that Kansas actually publishes their rate monthly.

            The Prime Lending Rate is currently 3.25%. Till is prime plus a risk factor of 1-3%. Kansas, automatically adds 1.5% to the prime lending rate to get the Till rate (taking the average risk). For Kansas, the Till rate would be 4.75%.

            (Prime has been 3.25% for over a year now.)
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment

              #7
              To the OP- I/we felt the same way this week! However, we were able to get financed easily at a local dealer. We are planning on filing a 13 in June- our atty advised us to purchase a new(er) vehicle to replace our 8 year old van with 150k miles. We did just that- and now have a much newer (with 110k less miles!) and got a rate of 13.5%. First (and hopefully last) time I will ever buy a car with a high rate. We just needed something to last us for the next 5 years of payback.

              My atty stated that we could purchase a vehicle at the 11th hour if needed- and it would not be frowned upon by the trustee- it is a necessary living expense.

              I have a question about the aforementioned "till rate". Since my auto loans will be included (I understand all creditors are included)- when does the actual rate get changed? Is it at the time of confirmation or at reaffirmation I would only need the new purchase changed as my other loan is at 4.75%.

              Woo-hoo! First post!

              Thank you to everyone here. I have been learning a ton from you all this past month- glad I am able to chime in with some supplemental information.

              Comment

                #8
                That is awesome, Milehigh! And we did get financing through Roadloans. Just a bit above your rate. Turned down many other places though. Glad they came through.

                Comment

                  #9
                  What is to be paid back in your plan (on the car loan) will be at the till rate. So that should be the balance at time of filing.

                  Originally posted by milehigh View Post
                  I have a question about the aforementioned "till rate". Since my auto loans will be included (I understand all creditors are included)- when does the actual rate get changed? Is it at the time of confirmation or at reaffirmation I would only need the new purchase changed as my other loan is at 4.75%.
                  Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
                  (In the 'planning' stage, to file ch. 13 if/when we have to.)

                  Comment

                    #10
                    Excellent! Thank you SM!

                    Comment

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