New Car Loans while in a chapter 13!

[Ann]

All, I was just wondering if it is at all possible while you are in a chapter 13 to be able to get a new car or not necessarily a brand new car but one in which you will need a loan for? If the possibility arises that we may go into a chapter 13 and we may need a car in that time frame how likely is it that we would be approved first by the trustee and second by a financing company?

[NoTomatoCan]

Both are possible, but financing can be tricky. Since you are not yet filed, why not get reliable transportation prior to filing for BK?

[Ann]

Thanks for replying! At this point we don't need a car. I'm just thinking that if we are put into a chapter 13 and it is for the 5 years that most plans seem to be then in that time frame I may need to purchase another car. Before I realized how dire my financial situation really was my credit score was 780 and now since not paying on my unsecured credit it has bottomed out to 585 (which I find really kind of laughable since I just checked my score and it was the 585 and shortly after stopping my payments it was 535...it actually climbed???) so I hardly doubt I would be approved by any auto finance company with the insurmountable amount of debt I now carry!!! I'm just trying to prepare myself for how restricting the plan will most likely be should we have to go that route and if I take the advice of lawyer I just paid I am not even allowed to file the 13 either!

[getback]

I am in the process of getting a car loan while in Chapter 13. I have went online to Roadloans.com and got approved for 20K at 20%. I went to the dealer, and the same company (roadloans.com) dropped the rate to 14%.

Long story short is that you will most likey need a new car. My car was 9 years old at the time of filing. Now it is 11 years old and I am ending up at the mechanics every month with something new...

When you file, I think you are allowed liek $250ish a month for car mantenance provided you have an older car..

Good luck.

[getback]

Ok, just got some bad news. The trustee recommends I get a car loan monthly payment around $300 a month. This does not really give me much of an option for cars...ARGH.

[Lissy]

I am also in the process of buying a car in a 13. My situation is a little unique, as I just filed a month ago and haven't even had my 341 meeting yet. But life happens and I was in a car accident 2 weeks ago where my car was totaled. So I was put into this position unexpectedly.

I was approved through Roadloans at a max loan amount of $21,900 and 18% interest. I was shocked they approved me, since like I said, I just filed and my credit is complete crap at this point. I do still have to obtain permission from my trustee, but his guidelines are that the payment cannot go over the $489 federal allowance OR the amount you were paying on the previous car. My RL approval also stipulates that I cannot have a payment over $500, so I'll be OK on that. I've been told my trustee typically approves these things in a day or two, so it sounds like he's pretty lenient with it. I suppose that could vary by trustee though. Generally, if you can get approved for financing, it shouldn't be a problem.

[mkstlowe]

Ok, just got some bad news. The trustee recommends I get a car loan monthly payment around $300 a month. This does not really give me much of an option for cars...ARGH.

I got a 2007 Nissan Max with 30k miles Sweet deal. Add the warranty got like 5k for my old Nissan and my payment is 298 a month. My attorney told us to do this. It helped our payemnt plan.

[getback]

I got a 2007 Nissan Max with 30k miles Sweet deal. Add the warranty got like 5k for my old Nissan and my payment is 298 a month. My attorney told us to do this. It helped our payemnt plan.

I guess you can get something good. Did you have to supply the Trustee with the loan papers after you signed?
I am wondering if I can get away with a down payment around $2000 plus the value of my car (say $500). I have a 165K on my car...

Blah

[mkstlowe]

I went in and told them. this is what i got, this is what i can spend. NO more. Don't waste my time. They didn't. I did this the day we hired our Attorney back in Oct. We just filed on March 29th. I had 1 car payment, and 1 no payment. The way the #'s work, you get more if you have 2 car payments then 1. So i was either giving the money back or paying for a car. Not to mention my old car had over 100k miles. So I didn't want to enter a plan with that much mileage on a car. Because our truck is a lease we know we want to keep. We did try to finance it and got turned down. So we have 7 months left. We are praying we can get financed. If not we are not sure what we will do. After reading all this stuff. I feel i should find something. Like everyone said so many people are having to give up good cars to keep their homes and stuff. YOu should find a deal!

[getback]

I went in and told them. this is what i got, this is what i can spend. NO more. Don't waste my time. They didn't. I did this the day we hired our Attorney back in Oct. We just filed on March 29th. I had 1 car payment, and 1 no payment. The way the #'s work, you get more if you have 2 car payments then 1. So i was either giving the money back or paying for a car. Not to mention my old car had over 100k miles. So I didn't want to enter a plan with that much mileage on a car. Because our truck is a lease we know we want to keep. We did try to finance it and got turned down. So we have 7 months left. We are praying we can get financed. If not we are not sure what we will do. After reading all this stuff. I feel i should find something. Like everyone said so many people are having to give up good cars to keep their homes and stuff. YOu should find a deal!

Thanks, but what happened after you signed for the loan? Did you have to copy the Trustee with you loan info?

[sheilaE]

We just got approved just last week . We had been turned down by Roadloans & quite a few other online financing car companies, then we saw a commercial for a local dealer in our town that approves people with bad credit, so we though we'd give it a try. We were so nervous sitting there while they went over our credit report, but they treated us like anyone else and we got approved. Our credit scores were in the 500's as well. The only bad part was the company they got to finance us would only do a 4 yr loan, plus the interest rate is at a whooping 23%! The payments are $380.00 for a 87 Chevy Equinox. We put $2500.00 down. I think we should be able to lower the interest rate once we file. We're just happy someone approved us. Our other car had over $1400.00 worth of repairs last year

[mkstlowe]

i got the loan before i filed so the amoutn was put into my plan

[needanswers]

We know we are going to need a new car before the 5 years is up because my husband has a very long commute. But we're scared to go create new debt right now. Does any one know if we are allowed to save money in a 13 to buy a cheaper car during the plan?

[getback]

We know we are going to need a new car before the 5 years is up because my husband has a very long commute. But we're scared to go create new debt right now. Does any one know if we are allowed to save money in a 13 to buy a cheaper car during the plan?

\
call your lawyer. He will tell you that you need to get permission from the trustee for a car loan. your car loan payments will be taken from your monthly trustee payments. I just found out that I can get a loan around 300 a month.

[sheilaE]

If you haven't filed chapter 13 yet-then you can get it now without permission. We haven't filed yet, but we've retained a lawyer. I called him before we started looking and he said yes-it's a good idea to get a reliable car if we are going to go into a chapter 13.
Once you've filed it's a different story-you'll need to get approval, but from what I've been reading on here, it's not a problem. Good luck!