vehicle repo'd last night, ? about interest rate if I get used vehicle

[bankdivorce]

Really long story, but stbx is mentally ill and screwed up our finances, hasn't been paying me enough to cover cost of our dually owned vehicle and haven't been able to get him to increase.
Like I said, long story but my main question is this. They repo'd the vehicle last night. If I go this weekend and try to get another used vehicle before the repo hits the credit reports, and then we declare bankruptcy next week, what happens?
Last year we were considering chapter 13 and our former attorney told us that the interest rate on the dually owned vehicle would go from 20 something to a 6. Is that the case with a chapter 7?

I am going to buy an inexpensive, practical used vehicle if I can. Probably in the 10K range. It will be the only vehicle I own and I have no down payment so no "equity" in the thing.

I have tried all day to contact the BK attorney but because stbx hasn't paid her yet she wouldn't answer my calls.
Thanks in advance.

[lrprn]

I am going to buy an inexpensive, practical used vehicle if I can. Probably in the 10K range. It will be the only vehicle I own and I have no down payment so no "equity" in the thing.

Don't assume you can walk into a dealer, put no money down, and get a car loan that is affordable. The economy has dried up many of the easier loan avenues. What's your current credit score?

[szbenne]

My car was repo'd in July...OMG it was devastating...I was able to borrow a friend's car and decided to file Ch 7. Well months and months have passed and it was becoming obvious that the car wasn't going to last and I couldn't decide whether to use a lawyer for my bankruptcy or not. They are so expensive!!!

During all these months I was researching and decided to file my bk without an attorney but needed reliable car. At the end of Feb I bought 2001 Isuzu for $5500 at 29% with $1000 down and payments of $220 for 3 years. Yes the interest rate is crazy but my choices were limited.

It's not impossible but not easy either

I just filed pro se on March 20th. We will see how everything goes.

Good Luck!

[willbfree]

We filed Monday and twice this week already two local auto companies sent us letters in the mail. Each saying basically the same thing "Why drive all over town? Bankruptcy no problem. Interest rates starting as low as 10%". I am sure we wouldn't be driving off with a 10% loan but it shows that at least here bk and car loans don't seem to be a big deal. We aren't in the market for another car but our mail has certainly become interesting since the bk was filed. Lots of companies must use the official court bk records for their mailing lists.

[BK2008]

I did the same thing.... While my credit was good, just before I 'surrendered' my vehicle, I went out and bought an 7K car, no money down, 7.25% interest, payments @140/mo for 5 years.
But this was a year ago, before lending tightened up, too. If you're going to do it, do it before the repo hits your credit reports. Then you have a shot at a decent rate.

[bankdivorce]

But what I'm saying is, because my credit score is low, I know I'm going to get a bad rate. It will probably be around 20%.

I was just wondering if they have to lower the interest rate AFTER you declare BK?

[2Bshinyandnew]

But what I'm saying is, because my credit score is low, I know I'm going to get a bad rate. It will probably be around 20%.

I was just wondering if they have to lower the interest rate AFTER you declare BK?

Maybe your former attorney was referring to a 722 Redemption loan? You can search the forum for more info and the link below has information as well:

http://www.722redemption.com/

[stratos]

In a ch. 13 plan, the "Till rate" is applied; currently around 6%. But in a 13, you'll also have higher atty and trustee fees.

[BAR]

to answer you directly, No they do not change your interest rate on a car loan in a chapter 7. The rate is what it is when you purchased the car.