Getting a car loan while in Bk?

[cj0203]

We may need to let one of our trucks go due to maintenance issues. We have NOT reaffirmed yet. My question is, what are the chances we could let that go and get a new loan for a cheap replacement? (under $10K).

Has anyone done this? Our 60 days is up Friday, so we're almost done. Should we just wait until it's done, do a ride through on the truck and then when we find what we want; surrender the truck? How does that work?

Thanks!!!

[Tbornetun]

DO NOT SIGN A REAFF ON THE TRUCK!!! Stop payments, allow them to repo, etc. I had a client, a couple weeks ago, get a car loan as soon as he received his discharge. The lender is probably going to want a copy of the discharge order.

[KP1980]

My husband got a car loan 1 month after discharge. He did surrender two vehicles with his bankuptcy. You can get a loan after, it will have high interest for awhile. His interest was 18% and I think the vehicle loan was $15,000.

[cj0203]

Thanks for the replies! I don't know what I'll do. We've got a good rate on the truck, so I don't know if it's cheaper to just fix it or finance something else at a higher rate. I'll have to figure it out.

[BassBoy]

Thanks for the replies! I don't know what I'll do. We've got a good rate on the truck, so I don't know if it's cheaper to just fix it or finance something else at a higher rate. I'll have to figure it out.

Normally, if you're way upside down on the loan, then the better choice may be to release yourself from the burden. Next, if the vehicle needs a major repair, then it may also be a better choice to let the vehicle go.

After the discharge, you'll probably pay a higher rate for another vehicle loan, but the positive to this is you could end up in better shape as far as the LTV (loan to value). For once, you could have positive equity if and when you decide to trade-up for something newer in a few years. Not to mention, the positive affect to one's credit rating. Doing the Ride Through does nothing for one's credit. The other thing to consider is the possibility of refinancing after a year or so of on-time payments and getting a lower rate and possibly shortening the term. (Just a note: You should NEVER refinance a vehicle loan unless you're able to refinance the loan for the same number of months remaining on the original loan).

Take some time and weigh out the pros and cons. Surely, you'll make the right decision in the end.