Question about financing after a bankruptcy

sidewayzls3 · 07-12-2009, 07:26 PM

I have friend who had to file a chapter 13 bankruptcy. He will have it paid off in a few years. When its paid off he will not have any bills other than utilites. How long should he wait before trying to buy a new car? How hard will it be for him to get a loan with a decent intrest rate?

dayvedayve · 07-12-2009, 08:29 PM

Don't bother till after discharge. It wont be until the bankruptcy is off his record (7 yrs) that he will get a decent interest rate. He can get financed but will have a high rate and large down payment. The economy being the way it is will mean that he will not be alone when it comes to this financial situation.

Augie1978 · 07-12-2009, 09:34 PM

It depends on the reason for the BK also. If it was due to something beyond his control he should talk to his local community banker who may be able to help him right away. If it was due to something he caused then thats a different story.

sidewayzls3 · 07-12-2009, 09:45 PM

It was a ch.13 not a ch.7 Wont that help? Also once it disappears his debt to income ratio will be very low since he will only have utility bills to pay. He was like alot of people is: faced with a permanent layoff with a bunch of credit cards.Then it didnt help when he tried one of those debt solutions programs and got screwed over big time with it.

Augie1978 · 07-12-2009, 09:52 PM

BK is a BK unfortunatley, unless its for something like big time unforseen medical bills you are trying to shake. Best bet is to still talk to a community banker that can make concessions, not some big ass regional bank person who cannot make decisions and has to follow rules for the bank.

Vash · 07-13-2009, 02:36 PM

It takes 8 years before you can get anything.

soverydeb · 07-13-2009, 08:12 PM

you can buy whatever you want after a bankrupcy...my neighbors in TX (years ago) had one, then they turned around and went to Hawaii for a vacation for 2 weeks, and she got a new set of boobs. hahaha don't know what it cost them (interest and all that), but I'm sure it cost plenty!!

dayvedayve · 07-13-2009, 09:16 PM

Difference between 13 and 7. 13 shows you are making an effort to repay some of your debt. Benefit is only on your record for seven years. & is just a middle finger to your debt and that means its on for 10 yrs. With a 7 your are discharged very quickly ( few months) and you go on with your life. With a 13 you have to get permission from the Bankrupsty Trustee to acquire new debt. Not impossible but you have a whole lot of hoops to jump thru. Also take this into consideration. All debt weather its a 7 or 13 will still be on your credit score until it is 7 yrs old. In other words, those credit cards and that you didn't pay will still bring down your score.

Vash · 07-13-2009, 10:20 PM

8 years not 7.

And this thing about buying whatever you want is bogus. It sounds to me like they loaded out there credit cards right before they filed.

The chapter 13 benefit comes ONLY once it has been removed off your record not during.
Once it's removed the local courts normally have a program setup to get you started with a small credit card and a car loan.

TJTKSDMJ8 · 07-13-2009, 11:25 PM

A childhood neighbor of mine filed BK. About 1 yr later he started getting credit card offers! He applied and GOT THEM!!! 35% with the highest limit being $500. You guessed it he is up to his eyeballs in debt....again.

I saw him recently and I was in my Camaro..his response?

" So what? are you trying to show off?" This was when I was at my parents house when I went over to help my dad install a new ceiling fan. I was like "right dude, my mom bought a fan, I had the day off, AND timed it perfectly to pull into their driveway, while you, a 42 year old was pissed off because your mom, who you still live with because you got evicted from your apt, sent you outside to throw away the trash!

Wow.. was that a vent session or what?

veyron · 07-14-2009, 03:53 PM

banks actually used to like prior bankruptcy clients, as they cant file another one for years :-) but due to current situation it is harder, but as long as you have OK downpayment and verifiable income, you should be ok. Rates will be higher, but you can get in a car now and refinance later. But you have to have all supporting documents and it will have to reflect on your credit that it has been discharged and all before you have chance. It will be much harder if you are taking down a car loan as a part of that bankruptcy. So i would say wait about a year not to ding your credit even more by putting inquiries.

good luck!

sidewayzls3 · 07-14-2009, 08:47 PM

He was gonna wait till he paid the bk off before he even tries to build his credit back. Besides that your not allowed to borrow or finance while under ch.13. He had a car that was part of the bk but it was paid off in full last year.

Paperer · 07-14-2009, 08:49 PM

Someone I know filed bankruptcy at the end of last year and just last week they were able to purchase a brand new Honda.

sidewayzls3 · 07-15-2009, 08:44 PM

Quote:

Originally Posted by Paperer

Someone I know filed bankruptcy at the end of last year and just last week they were able to purchase a brand new Honda.

They probably filed ch.7 ( dont have to pay anything back).My friend had to file a ch.13 and has to make a payment on it for 4 years. Do you know what kind of intrest rate your friend got on that honda.

07-12-2009, 07:26 PM	#1
sidewayzls3 Drives: chevy s10 Join Date: Jul 2009 Location: cana va Posts: 13	Question about financing after a bankruptcy I have friend who had to file a chapter 13 bankruptcy. He will have it paid off in a few years. When its paid off he will not have any bills other than utilites. How long should he wait before trying to buy a new car? How hard will it be for him to get a loan with a decent intrest rate?

07-12-2009, 09:34 PM	#3
Augie1978 Drives: 2011 2SS RS Vert Join Date: May 2009 Location: Central Illinois Posts: 621	It depends on the reason for the BK also. If it was due to something beyond his control he should talk to his local community banker who may be able to help him right away. If it was due to something he caused then thats a different story. __________________ 2SS RS, Triple Black Vert, Manual, Hurst Shifter. American Racing Headers, Roto-Fab CAI

07-12-2009, 09:52 PM	#5
Augie1978 Drives: 2011 2SS RS Vert Join Date: May 2009 Location: Central Illinois Posts: 621	BK is a BK unfortunatley, unless its for something like big time unforseen medical bills you are trying to shake. Best bet is to still talk to a community banker that can make concessions, not some big ass regional bank person who cannot make decisions and has to follow rules for the bank. __________________ 2SS RS, Triple Black Vert, Manual, Hurst Shifter. American Racing Headers, Roto-Fab CAI

07-13-2009, 11:25 PM	#10
TJTKSDMJ8 I COMMAND YOU TO HOOK 'EM Drives: 2010 Black Camaro SS2/RS R6P Join Date: Feb 2009 Location: Re-building Death Star (Need Contractors) Posts: 2,670 View My Garage	A childhood neighbor of mine filed BK. About 1 yr later he started getting credit card offers! He applied and GOT THEM!!! 35% with the highest limit being $500. You guessed it he is up to his eyeballs in debt....again. I saw him recently and I was in my Camaro..his response? " So what? are you trying to show off?" This was when I was at my parents house when I went over to help my dad install a new ceiling fan. I was like "right dude, my mom bought a fan, I had the day off, AND timed it perfectly to pull into their driveway, while you, a 42 year old was pissed off because your mom, who you still live with because you got evicted from your apt, sent you outside to throw away the trash! Wow.. was that a vent session or what? __________________ Proud Owner of a R6P Black SS/2, RS, CGM Stripe Package Delivered July 3!!!

07-14-2009, 08:49 PM	#13
Paperer Ragin' Cajun Drives: '02 Camaro SS - '10 CGM 2SS/RS Join Date: Jul 2008 Location: Texas/Oklahoma Posts: 1,166 View My Garage	Someone I know filed bankruptcy at the end of last year and just last week they were able to purchase a brand new Honda. __________________

07-12-2009, 08:29 PM	#2
dayvedayve Drives: 2006 Chevy Avalanche Join Date: Aug 2008 Location: Gulf Coast of Texas Posts: 386	Don't bother till after discharge. It wont be until the bankruptcy is off his record (7 yrs) that he will get a decent interest rate. He can get financed but will have a high rate and large down payment. The economy being the way it is will mean that he will not be alone when it comes to this financial situation.

07-12-2009, 09:45 PM	#4
sidewayzls3 Drives: chevy s10 Join Date: Jul 2009 Location: cana va Posts: 13	It was a ch.13 not a ch.7 Wont that help? Also once it disappears his debt to income ratio will be very low since he will only have utility bills to pay. He was like alot of people is: faced with a permanent layoff with a bunch of credit cards.Then it didnt help when he tried one of those debt solutions programs and got screwed over big time with it.

07-13-2009, 02:36 PM	#6
Vash Drives: 00 Blazer Join Date: Aug 2008 Location: Texas Posts: 5,100	It takes 8 years before you can get anything.

07-13-2009, 08:12 PM	#7
soverydeb Drives: 2010 2LT Camaro Blk/Blk Join Date: Feb 2009 Location: Wichita Posts: 367	you can buy whatever you want after a bankrupcy...my neighbors in TX (years ago) had one, then they turned around and went to Hawaii for a vacation for 2 weeks, and she got a new set of boobs. hahaha don't know what it cost them (interest and all that), but I'm sure it cost plenty!!

07-13-2009, 09:16 PM	#8
dayvedayve Drives: 2006 Chevy Avalanche Join Date: Aug 2008 Location: Gulf Coast of Texas Posts: 386	Difference between 13 and 7. 13 shows you are making an effort to repay some of your debt. Benefit is only on your record for seven years. & is just a middle finger to your debt and that means its on for 10 yrs. With a 7 your are discharged very quickly ( few months) and you go on with your life. With a 13 you have to get permission from the Bankrupsty Trustee to acquire new debt. Not impossible but you have a whole lot of hoops to jump thru. Also take this into consideration. All debt weather its a 7 or 13 will still be on your credit score until it is 7 yrs old. In other words, those credit cards and that you didn't pay will still bring down your score.

07-13-2009, 10:20 PM	#9
Vash Drives: 00 Blazer Join Date: Aug 2008 Location: Texas Posts: 5,100	8 years not 7. And this thing about buying whatever you want is bogus. It sounds to me like they loaded out there credit cards right before they filed. The chapter 13 benefit comes ONLY once it has been removed off your record not during. Once it's removed the local courts normally have a program setup to get you started with a small credit card and a car loan.

07-14-2009, 03:53 PM	#11
veyron Drives: 2010 CAMARO Join Date: Jun 2009 Location: CA Posts: 28	banks actually used to like prior bankruptcy clients, as they cant file another one for years :-) but due to current situation it is harder, but as long as you have OK downpayment and verifiable income, you should be ok. Rates will be higher, but you can get in a car now and refinance later. But you have to have all supporting documents and it will have to reflect on your credit that it has been discharged and all before you have chance. It will be much harder if you are taking down a car loan as a part of that bankruptcy. So i would say wait about a year not to ding your credit even more by putting inquiries. good luck!

07-14-2009, 08:47 PM	#12
sidewayzls3 Drives: chevy s10 Join Date: Jul 2009 Location: cana va Posts: 13	He was gonna wait till he paid the bk off before he even tries to build his credit back. Besides that your not allowed to borrow or finance while under ch.13. He had a car that was part of the bk but it was paid off in full last year.

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
GM Could Benefit From Bankruptcy	SSintheOZARKS	General Automotive + Other Cars Discussion	8	09-22-2010 11:40 PM
Question regarding Dealership Financing	kizzle02	Camaro Price \| Ordering \| Tracking \| Dealers Discussions	11	06-28-2009 08:34 PM
Financing Question	Verio	Camaro Price \| Ordering \| Tracking \| Dealers Discussions	13	06-25-2009 10:16 PM
‘Surgical’ Bankruptcy Possible for G.M.	Enator	General Automotive + Other Cars Discussion	19	04-14-2009 07:07 AM
OK WILL SOMEONE PLEASE ANSWER THIS QUESTION OM FINANCING	leatherneck	Camaro Price \| Ordering \| Tracking \| Dealers Discussions	22	03-26-2009 04:53 PM