Buying a car while in chapter 7

[Jakeh1322]

Here is the scenario. I filed chapter 7 back in march, had 341 hearing in april. just waiting on discharge. I am surrendering my truck and am looking at purchasing a new vehicle. Most lenders/auto dealers will not finance me till i get my discharge. there is one here in az that is working with me and assured me they could finance me in chapter 7. I am worried about with the surrendering of the truck. question is can i just wait till im discharged to surrender the truck. i have not been making payments on it since i filed. i mean can they come take the car anytime or they have to contact me? it my only vehicle so i need something to drive before i get something. any help would be appreciated.

[Nicollette]

I could be wrong, but even though you're surrendering it, I think the lender has to motion the court for a relief from stay so they can come get it.

[Jakeh1322]

thanks for the quick reply. In other words they can just come take the car without me knowing it right? i have done some searching on the forum seems like most people say that if they dont file a motion to lift the stay then i should just surrender the truck after i get discharged?

[Jakeh1322]

ALSO people on here that are in/were in the same situation. Did you purchase a car before or after getting discharged.

[startingovr]

You are in the same situation as me. The bank will have to file for a relief from stay if they want the car prior to discharge. Chances are they won't do it b/c it will cost them more money. Just drive the car until your BK is discharged. Once it is discharged they will come get it. I bought my car 1 week after discharge and left the old one at the dealership. When the bank called I told them where it was and they sent the tow truck to pick it up. Just be sure to save some money b/c you will need money for a down payment. This is what the finance director at the dealership told me to do and everything worked like it was supposed to. He could have totally ripped me off and gotten me into a car prior to discharge but he didn't. As he put it, "Why wouldn't you want to drive a car for free for a few months?". LOL

[GettingGoing]

You are in the same situation as me. The bank will have to file for a relief from stay if they want the car prior to discharge. Chances are they won't do it b/c it will cost them more money. Just drive the car until your BK is discharged. Once it is discharged they will come get it. I bought my car 1 week after discharge and left the old one at the dealership. When the bank called I told them where it was and they sent the tow truck to pick it up. Just be sure to save some money b/c you will need money for a down payment. This is what the finance director at the dealership told me to do and everything worked like it was supposed to. He could have totally ripped me off and gotten me into a car prior to discharge but he didn't. As he put it, "Why wouldn't you want to drive a car for free for a few months?". LOL

Would you mind sharing with us who financed this car? Rate? Down payment? Thanks.

[startingovr]

Wachovia, 12.9%, $1000 down

I am almost positive I could have gotten a better rate but I didn't have the time or patience to deal with it. The car is going on 5 years old as it is a 2006. I am going to pay it off by next year as I am chipping away at the principle in big chunks, so the interest rate doesn't bother me too bad.

[GettingGoing]

Wachovia, 12.9%, $1000 down

I am almost positive I could have gotten a better rate but I didn't have the time or patience to deal with it. The car is going on 5 years old as it is a 2006. I am going to pay it off by next year as I am chipping away at the principle in big chunks, so the interest rate doesn't bother me too bad.

12.9% a week out of bk is not a bad rate. Do you know what your scores were when you bought the car?

[startingovr]

The finance director said it was around 650-ish. I don't remember the exact score though.