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Can you get a car loan with an open chapter 13 bankruptcy?
Perhaps, but the terms will not be favorable, most especially the rate of interest. It is also a requirement when in a Chapter 13 repayment bankruptcy, that all major financial transactions have the apporval of the bankrutpcy trustee.
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Whether your car loan is discharged by a bankruptcy or not will depend on your state and the equity in your car. Whether the loan will be discharged or not is called an "exemp…tion".
Assuming you mean, can you get a car loan if you are in a Chapter 13, the answer is yes. You must have a contract for the purchase and loan with all elements determined (no bl…ank spaces) and then file a motion for it to be allowed. If the payments replace a prior car loan or an existing car loan, there should be no problem. If your car loan payments would be significanly higher, you will have to amend your plan to show how you can afford the payments without affecting the plan.
Yes, they can be discharged. A chapter 13 may not be the best way to go, however. You should consider a chapter 7, if you qualify. Consult a local bankruptcy lawyer.
No--one- the lenders will see the bankruptcy and ask for the discharge date, and two if the bankruptcy court finds out you are applying for credit--this could stop the whole …procedure. ACTUALLY: YES you CAN! we have multiple lenders who will give you a car loan while your bankruptcy is open. Chapter 7 or 13. In a Chapter 13 you will need the trustee and judges permission. Go to www.WashingtonAutoCredit.com to learn more.
Not without permission from the bankruptcy trustee/court. Yes. But you will have to overcome a lot of obstacles in order to obtain one. Some lenders will approve a home loan i…f you are in Chapter 13 bankruptcy but only after you have paid consistently for one year and have a credit score of 620 or above. Lenders, as a rule, will not consider a loan until you have approval from the Bankruptcy Court. You will have to ask your bankruptcy trustee for approval to get the loan. This trustee will give you an amount you are allowed to finance. Unfortunately, the amount is usually low. Here is an example: Annual income: $100,000 All payments to Bankruptcy Court have been consistent for 2 years. Credit score: 630 Amount needed to finance home: $119,000 Bankruptcy Trustee Loan Approval Amount: $65,000 Although you may qualify to receive a loan in the amount of $119,000, the bankruptcy trustee will only allow you to finance up to $65,000. If you do not have $54,000 to make up the difference.....you will not be able to purchase the home. That being said, it's worth a try. So before you start looking at houses for sale, have your attorney request the bankruptcy trustee for loan approval and what amount. At least from there you will know where you stand.
How can you improve your credit score after filing chapter 13 bankruptcy have no credit cards or loans and car is being paid off through court?
Building you credit can be easy. Since you filed Chapter 13, you will have to get permission to obtain additional credit. Try one of the following ideas to build your cre…dit: Ask your bank or credit union about a secured credit card. You can make a deposit to your account and have a credit limit in the amount of your deposit. The bank takes little risk and you build credit slowly. Use a co-signer on your first few credit accounts. Lenders will consider the co-signer's existing credit. The co-signer essentially 'vouches' for you while you build credit. Note that this is a big responsibility - you can cause major headaches for the co-signer if you don't pay as agreed (Use retailer programs for modestly large purchases like furniture. For example, you may buy a television on the "$40/Month Payment Plan". Gas station cards may work as well. These programs can be easier to qualify for and they certainly help you build credit. Be sure that the retailer will report your loan to the major credit reporting companies. Get a credit card with any reputable institution that will give you one. Again, you have to make sure they'll report your timely payments to the credit reporting companies. Of course, you have to always pay at least the minimum before the due date. All of this is to get your credit score calculated; here is the information about your credit score. 1. Payment History (35% of score).The first thing any lender wants to know is whether you have paid your past credit accounts on time. The payment history factor of credit scoring takes into account: Payment information on many types of accounts. These include credit cards (such as Visa, MasterCard, American Express and Discover), retail accounts (credit from stores where you do business, such as department store or gas station credit cards), installment loans (loans where you make regular payments, such as car loans), finance company accounts and mortgage loans. Public record and collection items. These include reports of events such as bankruptcies, judgments, suits, liens, wage attachments and collection items. These are considered quite serious, although older items count less than more recent ones. Details on late or missed payments and public record and collection items. A 30-day late payment is not as risky as a 90-day late payment, in and of itself. But recently and frequency count too. A 30-day late payment made just a month ago will count more than a 90-day late payment from five years ago. Note that closing an account on which you had previously missed a payment does not make the late payment disappear from your credit report. How many accounts show no late payments? A good track record on most of your credit accounts will increase your credit score. 2. Amounts Owed (30% of score).Owing money on different credit accounts does not mean you're a high-risk borrower with a low score. However, owing a great deal of money on many accounts can indicate that a person is overextended, and is more likely to make some payments late or not at all. Part of the science of scoring is determining how much is too much for a given credit profile. This factor takes into account: The amount owed on all accounts. Even if you pay your credit cards in full every month, your credit report may show a balance on those cards. The total balance on your last statement is generally the amount that will show in your credit report. The amount owed on all accounts, and on different types of accounts. In addition to the overall amount you owe, the score considers the amount you owe on specific types of accounts, such as credit cards and installment loans. Whether you are showing a balance on certain types of accounts. In some cases, having a very small balance without missing a payment shows that you have managed credit responsibly, and may be slightly better than no balance at all. On the other hand, closing unused credit accounts that show zero balances and that are in good standing will not generally raise your score. How many accounts have balances? A large number can indicate higher risk of over-extension. How much of the total credit line is being used on credit cards and other "revolving credit" accounts. Someone closer to "maxing out" on many credit cards may have trouble making payments in the future. How much of installment loan accounts are still owed, compared with the original loan amounts. For example, if you borrowed 3,000 to buy a car and you have paid back 3,000, you owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you are able and willing to manage and repay debt. 3. Length of Credit History (15% of score). In general, a longer credit history will increase your score. However, even people with short credit histories may get high scores, depending on how the rest of the credit report looks. This factor takes into account: * How long your credit accounts have been established, in general. The score considers both the age of your oldest account and an average age of all your accounts. * How long specific credit accounts have been established. * How long it has been since you used certain accounts. 4. New Credit (10% of score). Research shows that opening several credit accounts in a short period of time represents greater risk, especially for people who do not have a long-established credit history. This also extends to requests for credit, as indicated by "inquiries" to the credit reporting agencies (an inquiry is a request by a lender to get a copy of your credit report). This factor takes into account: How long it has been since you opened a new account. How many new accounts you have. How many recent requests for credit you have made, as indicated by inquiries to the credit reporting agencies. Be assured, however, that if you request a copy of your credit report to check it for accuracy - which is always a good idea - it will not affect your score. This is considered a "consumer-initiated inquiry," not an indication that you are seeking new credit. Also, your score is unaffected by lender inquiries into your credit report for purposes of making you a "pre-approved" credit offer, or for reviewing your account with them, even though these inquiries may show up on your credit report. Length of time since credit report inquiries were made by lenders. Record of recent credit history following past payment problems. Re-establishing credit and making payments on time after a period of late payment behavior will help to raise a score over time. 5. Types of Credit in Use (10% of score). This factor considers your mix of credit types: credit cards, retail accounts, installment loans, finance company accounts and mortgage loans. It also looks at the total number of accounts you have; for different credit profiles, how many is too many will vary. This means it is not necessary to have one of each type, nor is it a good idea to open credit accounts you don't intend to use. The credit mix is generally not a key factor in determining your score - unless your credit report does not have a lot of other information upon which to base a score. Why Do Credit Scores Vary? The major credit reporting agencies - Experian, Equifax and Trans Union - consider only the data in your credit report at that particular agency. Since different lenders report to different agencies, one firm may generate a different score than another one. Below is a way of interpreting your credit score. Given the current credit score stats, how does this relate to your own personal score? Generally, if your score is higher than 660, you will be considered a good credit risk. If your score is below 620, then you might have a tougher time getting a loan. The following ratings explain the impact of the different score ranges: * 720-850 - Excellent - This represents the best score range and best financing terms. * 700-719 - Very Good - Qualifies a person for favorable financing. * 675-699 - Average - A score in this range will usually qualify for most loans. * 620-674 - Sub-prime - May still qualify, but will pay higher interest. * 560-619 - Risky - Will have trouble obtaining a loan. * 500-559 - Very Risky - Need to work on improving your rating.
There is the possibility, although the probability is low. Most consumers find it impossible to get financing with an ongoing Chapter 13 bankruptcy. Usually, you need to have …at least 12 months after the BK is discharged before you are lendable again. That being said; there are programs which do not consider credit at all. Given the right broker who is experienced, and enough money, anything can be accomplished. You must also ask your Trustee for permission to assume additional debt. I found this helpful: Current Bankruptcy If you are currently in chapter 13 bankruptcy, you may be able to qualify for a home loan. In fact, some lenders can actually provide FHA loans at low interest rates for borrowers in chapter 13. Re: HUD Handbook section 4155.1 Rev-4. "A borrower paying off debts under Chapter 13 of the Bankruptcy Act may also qualify if one year of the pay-out period has elapsed and performance has been satisfactory, and the borrower also receives court approval to enter into the mortgage transaction."(http://www.emortgage.com) I am trying to use the FHA to get a home loan while in chapter 13 and I have been trying to get them to clear a house since August. I made over $80,000 last year and all the BK judge would approve for me to have in a loan was $45,000 so don't get your hopes up no matter how good you have done with the bankruptcy. I have the money taken out of my check every much so I have never missed a payment and this process is a nightmare that has made me cry night after night. The mortgage broker says I would have been better off if I have filed chapter 7. Isn't that a kick in the teeth! ANSWER I am currently in a Chapter 13. Due to divorce and my husband's bills which I got stuck with. I thought I could get some reduced rates on my bills with Chapter 13. NOT. The lawyer told me that I would be clean after bankruptcy. NOT. I would have been better off just to NOT PAY all the unsecured debt. That is what my ex did, and guess what? They laid all that debt on me. He is scott free and bought a NEW HOUSE. Even though I was NOT on his cards. We were married so I am stuck with the debt. Don't EVER declare bankruptcy. Just don't pay the unsecured debt if you can't pay it. Your credit will be trashed no matter what and unpaid unsecured debt looks better than a bankruptcy. The only one who gets rich on bankruptcy is the lawyers. I've been trying to get a loan to pay off the rest of the bankruptcy and get back to normal but I can't. My Chapter 13 takes $2500 out of my $3220 monthly pay. And I can't even fix my roof. I can barely pay for food and because I make $3220 per month I don't qualify for any aid of any kind. It's a nightmare. NEVER NEVER NEVER DECLARE BANKRUPTCY
Answer If you are lucky, yes. But most likely, no lender will give you a mortgage loan if you are or have declared bankruptcy.
Answer If you are asking if you can get a loan due to credit issues, then the answer is "yes" so long as your credit score and debt-to-income ratio a…re satisfactory to a lender. If you are asking if the bankruptcy court will permit it, then the answer is "maybe." You have to petition the bankruptcy court to get any new loans during the chapter 13 case, usually by filing a "Motion to Incur New Debt" and explaining therein why you want the loan, how much it will be for, payment amount, interest rate, etc. If the court thinks it is reasonable, they will grant permission. If the court thinks it is a bad deal for you or jeopardizes your ability to pay the creditors you have, the court will deny it. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. Thanks!
With or without a co-signer...you cannot get any loans, or change any of your financial resposnibilities (especially making new ones) without the approval of the adminis…trator of your case. Doing so, will have your case dropped and very possibly contemp of court, if not fraud charges levied...you swore in your agreement to the court to not do so. Don't you understand - that your in BK, you can't pay what you owe - you cannot borrow your way out of debt - any loan against the property you can't pay for already is using what could now go to someone else - someone else you owe - and should get paid before anyone else - but only isn't because you have legal protection while you do so?
A charge-off is a tax-related matter and has nothing to do with bankruptcy. The debt is still owed.
The short answer is yes. Of course, BK or not, to sell a car that has a loan means you must pay off the loan. And, it is unlikely anyone will give you another now. Tha…t actually may be fine, and exactly the type of compromise your situation calls for now...at least for a while. You absolutely need to co-ordinate any financial changes like this with your trustee.
While they cannot be discharged in BK, they can be incurred. But any change in financial circumstances, any new debt, MUST be approved by the BK administrator...or not… only will your case be dropped, you would be subject to charges for breaking your agreement with the court. (You really should read the court agreement). Normally, an adminstartor wouldn't allow new obligations (you cannot borrow your way out of debt...and you already can't pay what you've got)...however if properly presented that the education/training this debt will provide means that your "fresh start" on life that BK wants to provide, would be better for all if you had the ability to work and earn more, may be favorably recieved....but I suggest presenting it that your new education is part of your own re-evaluation of needs and to avoid ever being in this situation again.
It's fairly easy to buy a nice used car after you've been discharged from bankruptcy; there are companies that send mailings to these people offering them car loans. You'll …pay a high rate of interest,though. Buying a nsw car or leasing a car tends to be more difficult, but if you have an income adequate to pay off the loan, you may be able to get those, too.