please look!, regarding fed tax lien

[midnightrocket]

has any one on here been able to get a vehicle after a chap 7 discharge, that is with a fed tax lien in place also. cant get rid of it , as we all know. It is for approx. 6500$ after the attry gets 2006 fed tax discharged

[tcreegan]

Hello midnightrocket,

The tax lien, if the IRS is reporting it, is only one factor in your credit score. Not a deal breaker. More important questions:

Have you pulled your credit reports? Did you clean up your credit reports after the BK? What is your record on previous car loans?

Before you go car shopping, get your credit reports and examine them. Send a letter asking for corrections on anything negative that is incorrect. Get your credit scores, not the free ones, pay for the real FICO scores. Now you are ready to go car loan shopping.

Getting a car loan is not the hard part, if you are willing to pay over 20% interest all kinds of people will loan you money. (you've seen the ads: "bad credit, no credit, we approve!")
To get interest rates in a reasonable range will depend on your credit score and what your record was w/ previous car loans.
Less than low 600's is subprime territory, double digit interest rates. Interest rates steadily get smaller up to the mid 700's then tend to level out.

Shop for loans before you shop for cars. Check online sites, local banks or credit unions, before you ask the dealer for their best financing. Then you can compare their deal w/ your previous offers. One problem with dealer financing is that dealers can 'mark up' interest rates. This mark-up, usually 2.5%, is essentially a kickback for the dealer. Knowing your best financing offer ahead of time gives you a leg up on dealing w/ the dealer finance officer. Tell them I already have this offer from XYZ, can you beat it?

Just going on and on by now, hope enough made sense to help you somehow......

Tom in Colo

[midnightrocket]

well, im not through chapt 7 yet....i have retained attry...he will hopefully be fully paid on 10-01-10...my score when he ran it the other day was 497...i have a car loan that im going to maintain through the 7, the balance is 4500$ through santander usa, formerly hsbc...my rate is 6.8 % however, the payment history has not been great on it for the last couple years! i recently got a tax lien, and was wondering....can it still be done, that is getting financed for an auto with a fresh discharge 7 and a tax lien? my scenario i guess is twice as bad with all those neg blows....

[tcreegan]

Not anywhere as bad as you think....

Hi midnightrocket,

Here is what you do:

Pull all three reports and make sure they have all BK accts w/ a zero balance and IIB (included in BK) Get rid of "charged off" or 'closed by issuer' or any negative notation.
Make sure the car loan lender keeps reporting, especially if you have been on time. You will have to ask them, they won't do it b/c they are afraid of the automatic stay.
Make sure they don't have any negative notes on the car loan, the only notation (unless you have been late) should be 'continue to pay as agreed'

Do all this in writing. They will send you a copy of your report w/ each letter you write. Be persistent, the automatic answer is NO, after letter after letter the answer shifts to "well OK"

Patience and persistence pays off, with a couple credit building schemes you see posted around, you should be over the mid 600's getting a single digit interest rate in no time.

Auto loan people pay more attention to your auto loan history than others do, so have as much clean auto loan history as you can.

Good luck, sounds like you will be fine,

Tom in Colo