Getting financing again after a chapter 13

[DAYLAP]

How long after filing does it take to be able to get financing for a car again?
My husband and I are filing Chapter 13 and I own an 06 Honda Odyssey (paid for---well on our house!!) My husband is upside down on his BMW about 6K. He owes 22K. He's worried about Suncoast repo-ing his car because they are one of the major creditors and they are very aggressive. He wants to be able to trade the car in and get something new but our beacon score is already in the dirt and we can't seem to get anyone to give us financing (go figure!!! Really?) Do we keep car and stop making payments on it and eventually surrender it or do we use my van as equity in hopes of getting them to sell us two cars with about $14K down towards both? The atty advised him to try to get into a new car with a different creditor and he even suggested that I get a new car so we weren't showing about 16K in equity in my van. I love my van, though and don't want to give it up just to be stuck with a car payment. I've heard lots of stories of how people go right out after filing and are given car loans and they buy new cars. I don't know if we should rush to do something now or wait until we're in the process and the creditors see a 'clean' slate. Any thoughts, anyone?

[newbie2]

How long after filing does it take to be able to get financing for a car again?
My husband and I are filing Chapter 13 and I own an 06 Honda Odyssey (paid for---well on our house!!) My husband is upside down on his BMW about 6K. He owes 22K. He's worried about Suncoast repo-ing his car because they are one of the major creditors and they are very aggressive. He wants to be able to trade the car in and get something new but our beacon score is already in the dirt and we can't seem to get anyone to give us financing (go figure!!! Really?) Do we keep car and stop making payments on it and eventually surrender it or do we use my van as equity in hopes of getting them to sell us two cars with about $14K down towards both? The atty advised him to try to get into a new car with a different creditor and he even suggested that I get a new car so we weren't showing about 16K in equity in my van. I love my van, though and don't want to give it up just to be stuck with a car payment. I've heard lots of stories of how people go right out after filing and are given car loans and they buy new cars. I don't know if we should rush to do something now or wait until we're in the process and the creditors see a 'clean' slate. Any thoughts, anyone?

You can't acquire new debt in a Chapter 13 without your trustees approval. If you haven't filed yet I would find a way to get the new vehicle prior to officially filing.

That being said, you will also want to check your states auto exemptions. The 14K of value in your paid off car may be too much for you to exempt.

[Flamingo]

Your chances of financing during a Chapter 13 (and yes as stated you do need Trustee approval for any financing or new debt) are usually poor. After discharge and the completion of a successful plan with no late payments to the Plan or late payments on any other bills owed (i.e., mortgage0 is viewed as a plus by creditors and your chances are higher at that time of getting financing for a vehicle. What is the best scenario is if you had in the past a paid off, no late payments, vehicle loan through a car dealership for that vehicle (i.e., through Ford Credit, GMAC, etc.) and you go purchase the same brand car for which financing is offered by that same lender. Your chances of approval are much greater with that past history.

Best of luck to you!