Can you get a car loan with an open chapter 7 bankruptcy?
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.
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Is a loan that was taken out for school but is not considered a student loan dischargeable in a Chapter 7 bankruptcy?
Student loans are only non-dischargeable if they are funded by Federal or sometimes state monies. Some banks do act on behalf of government in lending Federally secured funds. You need to find the source of the funds that were lent, to know the status applied in a BK.
Answer . It probably doesn't matter since most student loans arenon-dischargeable (see 11 USC 523(a)(8), which says that studentloans may NOT be discharged in bankruptcy if they are "for aneducational benefit overpayment or loan made, insured or guaranteedby a governmental unit, or made under any p…rogram funded in wholeor in part by a governmental unit or nonprofit institution, or foran obligation to repay funds received as an educational benefit,scholarship or stipend, unless excepting such debt from dischargeunder this paragraph will impose an undue hardship on the debtorand the debtorï¿½s dependents."). If they are of the dischargeablenature (rare), I normally put them on Schedule F as an unsecured,non-priority creditor. If they are of the non-dischargeable variety(which is most of them), I normally list them on Schedule E andlist them as a "tax or other governmental loan." Please note thatnothing in this posting or in any other posting constitutes legaladvice; this is simply my understanding of the facts, which I donot warrant, and I am not suggesting any course of action orinaction to any person. Yes, you need to list student loans on your bankruptcy petition.You will need to list them on Schedule F. you have to be sure tonote this debt on the Statistical Summary (Form 6) under type ofliability "Student Loan." (MORE)
Answer 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.
Answer . There is no legal waiting period, so theoretically you could buy a new home the day after the Chapter 7 is closed. However, every mortgage lender I have asked has said the same thing: 2 years. You could probably get one sooner than 2 years, but your interest rate might be terrible so it… may be better to wait. \n. \nPlease 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. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks! (MORE)
What do you do if you stopped making payments on a car loan after filing chapter 7 bankruptcy and the creditor has refused to repossess the vehicle but will not release the lien?
Answer . \nA vehicle is a secured loan and cannot be discharged in bankruptcy. If a reaffirmation agreement between the lender and the borrower is not possible the vehicle is usually repossessed. However, the lender does not have a legal obligation to recover the vehicle. The lien will not be re…leased until the loan is paid or settled to the satisfaction of the lender. Under new bankruptcy laws, the lender is entitled to collect the full amount of the loan plus any applicable legal fees and interest. This generally means that the lender will file a lawsuit to obtain a judgment which can be used as a wage garnishment, bank account levy or other method as allowed by the state laws to collect money owed. (MORE)
If a bank has been advised that you are filing chapter 7 bankruptcy in Ohio but will reaffirm the car loan can they still repossess the vehicle?
Answer . Yes, many loan agreements have a clauses that allows them to call the note due and/or repo the vehicle if there are any singnificant changes to your credit status. Bankruptcy certainly qualifies.
The day you get your discharge paper. I do caution against that because ANY bad mark after a bankruptcy is taboo and you will not be able to finance anything for a long time.
As soon as you can find anyone wanting to give you a loan, you can get a loan. As you don't just have no credit, you have certifiably terrible credit and are a bad risk, those wanting to do so are typically out to charge more than even people in better financial situations than you can pay, and to t…ake advantage of you one way or another. See your question about getting a loan is only part of the issue. You may think getting loans is the hard thing and all you care about....and your entirely wrong....PAYING for the loan is the hard thing. You proved that in your past actions...did you learn from them? And how exactly do you expect to do so? And what exactly is different now from how you expected to do so the last time...and you didn't/couldn't pay...(other than having worse credit and likely now even hasving to be charged more?) (MORE)
That depends on the state you live in and the loan company. Talk to your lawyer about this.. ans . The bank can always agree to rewrite the loan, which is essentially what has to happen for it to be given a new interest rate. Why they would provide a bankrupt a loan, especially one at a lower rate…, I don't know. Maybe they don't want the security back, and feel they would have a greater loss by doing so and in order to prevent a loss by your BK they would rather get less on the existing one. So while you may be able to reaffirm (or get someone to give or maintain your creditability)...you cannot just decide to change the terms to what you want and reaffirm. (MORE)
The day you are discharged you can buy a car. You need to takeproof that you are discharged.
You file BK and it effects all your debts and all your assets. You do not pick and choose what you want included. A car loan is generally a secured loan, and the security maybe used to pay the debt under the bankruptcy.
If you own your car then you'll be able to keep it if its valuefalls under your state's vehicle exemption amount. The stateexemptions vary widely and some use the federal exemption. Thefederal bankruptcy exemptions allow you to exempt up to $3,675 ofequity in your car.
Yes, depending on your situation. You should contact an attorney to discuss how it will effect you. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.
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. That actually may be fine, and exactly the type of compromise your situation calls for now...at least for a while. You absolutely n…eed to co-ordinate any financial changes like this with your trustee. (MORE)
First you should answer some hard questions Is the car worth what you owe on it? Maybe just let it go and start over.....If you let the cars go can you deal with having only one car for a short time? Many dealers will finance bankruptcy customers and charge only higher interest rates.....Will bankru…ptcy help your family to accept their concequences and be financially responsible from this day forward? The statistics say most familys who declare bankruptcy will be in the same financial way in less than one year.... (MORE)
Yes, if the creditor first obtains relief from the automatic stay. This is accomplished by filing a motion and proving that you have not made payments on the vehicle.
Probably not...for many reasons.. First, in todays financial world, even well qualified people, with reasonable equity in their homes, and who have paid back heir other creditors on time and have no real chance of liens or judgments or losing assets have a tough time getting loans.. You are in BK.… EVERYTHING you own, and EVERYTHING you owe is included. (If you didn't include/report things, it will likely turn up, and can be considered fraud or at least contempt and certainly will lilley have your case dropped. Your assets and debts are classified, with some things perhaps being classed as exempt, and what you own is liquadated to pay what you owe...and the rest of what you owe discharged. The house will be sold to provide funds for those you owe. The equity ISN'T yours....it is actually those you owe and haven't paid. While some portion of the house may be "homesteaded" or exempt...well, that is exactly the portion you can't use as collateral on a loan, because the lender can't get to it.. Then of course there is the other aspect....your in BK, you haven't handled credit well...it will cost you a lot if you can find it...and much more than the people who actually manage to pay back what they borrow would consider. You cannot borrow your way out of debt. Whatever the change, making the ones that allow you live within your means is what is called for...live the life you can afford. You can't afford to live on borrowed money. Proved that. (MORE)
Yes you can, what you need is to show the courts that it is a requirement for your to still go to school or work. Make sure that you make out arrangements with the original creditor and keep paying on the car. You will then be allowed to keep your car as long as your payments are current.
First not without approval of your trustee...you can't change any financial things without that...by agreements YOU made to have them take control of what you couldn't handle.. And in reality, you ain't finding anyone that would loan you mone really...unless they are taking advanatge of you and cha…rging an absurd rate or such.. Finally, YOUR IN BANKRUPTCY, YOU CAN'T BORROW YOURSELF OUT OF DEBT!!! And you've shown you can't pay waht you promise you will. (MORE)
First, you don't file BK on a thing..a loan or a debt...YOU file BK and it effects everything you own and everything you owe. No picking and chosing.. Gov't insured or Guranteed student loans - which means most all programs - are exempt from discharge in bankruptcy. Therefore, they will not be chan…ged. (MORE)
You can, but this is just about the worst thing you can do. You lose in every way!. Your 401 is protected and cannot be seized or used. If you take a loan from it, the money loses the protection and can be taken...even the deals you made with it can be reversed or considered preferential. Leaving y…ou with a loan (that cannot be discharged), payments on it and essentially no 401. If you fail to pay the loan at any time, the 401 assets are defaulted and lost. Of course all these things make the "loan" become taxable income, incl the penalty for early withdrawal...etc, so you have no money, no 401 and @50% of what you took out is now a non-bankruptcy tax debt.. There are many other reasons...and if you didn't recognize them....and especially if you feel that there is any question about what you can or cannot do before maybe, possibly, even fairly certainly, filing BK in the future...you need professonal help - legal and financial...NOW. (MORE)
The law actually limits it to 1 car of $500 or less...however, virtually all Judges (realizing that old amount gets a car with more troubles than solutions) simply make it a reasonable car....you know - 3 year old Toyota OK, New Mercedes..not gonna be. If the vehicle is really a work one...like a …truck for a mover...it is almost always exempted no matter what. The above is wrong. First, it's not the value of the car, it's the debtor's equity, if the debtor has a $80,000 car with a $90,000 loan, he gets to keep it because it's not an asset, it's a debt. (whether it's a good idea to keep it is another issue). Second, the exemption is different in each state, for example in Ohio you get a auto exemption of $3,225. Work vehicles are NOT almost always exempted - there is a separate "tools of trade" exemption but it's not enough to cover a truck (Ohio $2,025). (MORE)
Sometimes. Expect the interest rate to be high. The reason some lenders will give the loans is once a person has had a bankruptcy, they can't file again for 7 years.
Who would loan this!? You can certainly ask someone to goive you a few hundred for a car, but no loan company would do so. This is what got the person in trouble to start with. There are very few investments worse then a car. Tell them to buy a $200 beater. I know that the current administration is …trying to keep porr people from owning cars (cash for clunkers), but there are still good deals out there. Do go into debt when you are struggling with it now! That is not learning from your mistakes. (MORE)
If they are gvernment insured or guaranteed, they CANNOT be discharged. It i one of the big exceptions.
In the event of chapter 7 bankruptcy, you may retain possession of secured property only in the event you reaffirm with the lender. In the event no reaffirmation is signed for each piece of property, the property that has not been reaffirmed must be returned to the lender. If non-reaffirmed property… is not returned to the lien holder (lender), that party may seek or continue with repossession of that property and any unpaid balance that is not forgiven by the chapter 7 once the bankruptcy is dismissed or discharged and the stay is lifted. (MORE)
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 blank spaces) and then file a motion for it to be allowed. If the payments replace a prior car loan or an existing car loan, th…ere 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. (MORE)
There is no reason to repay a loan after a discharged bankruptcy, if you have done so, you can reclaim all your money from the creditor (you'll have to go through court).
When you file chapter 7 bankruptcy and have a private student loan is it discharged with everything else?
Unfortunately no. Both private and federal student loans can not be discharged in Chapter 7 bankruptcy.
Most clients are happy to find that Chapter 7 bankruptcy does not result in them losing their car or home. The answer to your question depends on a variety of factors. First, under the bankruptcy code, each state is given authority to choose exemptions for Chapter 7 debtors. You can view California …exemptions by going to http://www.firstsourcelaw.com/chapter7bankruptcy/chapter7bankruptcy_exemptions.html These exemptions list the type and value of personal property you may keep. Depending on the state of your filing, there is likely an exemption for a car. However, the exemption may have a monetary limit. If you car is worth more than the exemption, you may not be able to keep the car. Start by searching for the relevant exemptions in your state and the amount exempted. Cross-reference that information with the value of your automobile as pulled from the Kelley Blue Book website. Once you are armed with that information, you should have a pretty good idea of whether or not you can hold on to your car. Most of my clients find that they keep all their personal property, including their car, despite filing Chapter 7. (MORE)
You may, but it is highly unlikely. The fact that you filed BK has negatively affected your credit rating. The time to reaffirm is during the BK procedings. Afterward, the lender will treat you like any other prospective borrower, and that negative rating will be what they look at.
If your loan was approved by chapter 7 bankruptcy can the bank still deduct from your checking account?
Not enough information is disclosed about the situation in order to answer. If you have an attorney assisting you in your bankruptcy ask them.
Only if the lender agrees to lower the amount due, remember that the BK discharged the promissory note; there is no legal mechanism to force the lender to lower the amount due (you are in a very weak bargaining position). If you dont make the full payments the lender is entitled to repossess the car…. (MORE)
How do you get the house out of your name after you filed Chapter 7 Bankruptcy If the bank forgives the loan?
i had file chapter 7 2001,the city i live keep sending notice to clean up perperty u ,it been over 11 years since the property i close up moved out ,i get fines ,pull my licence,driver licince how do i get the property out of my name , the bank will not take it what should i do?
All federally backed student loans are, for practical purposes, NON-DISCHARGEABLE. I say practically because the only way it would be dischargeble is if there was no way you would be in a condition to pay the loan off. Court precedent basically allows discharge if, for example, you are paralyzed fro…m the neck down, have MS, etc... (severe medical condition that incapacitates you) (MORE)
No, any activity that increases your debt, or invoves your property, would require court approval. You would be able to if the court approves.
I have been through Chapter 7 twice and both times was unable to claim my Student Loan.
This is a loaded question, and I must start out with the fact i am NOT an attorney. Anything like this needs to be put past a lawyer who has experience in bankruptcy. there are SO many factors involved, it's impossible to speculate. The premises of bankruptcy though is to afford people a "Fresh …Start" This means, if your down in the dumps, and you have no means of getting out of the debt your in, Bankruptcy is your LAST option. When you say too many loans? Did you run up a bunch of loans and then decide to file bankruptcy? Again, the point of bankruptcy is for those who really need a fresh start. If you tried your best in business and had to take out a bunch of loans to do it, and failed and need to bail; nobody is going to fault you for it. (MORE)
If you are in a C. 7 or within 6 months after the close of your case, any tax refund is property of the bankruptcy estate and must be turned over to the trustee. You may not get a loan against an asset (tax refund) without the court's permission.
Yes, you can keep you car in chapter 7 bankruptcy. In Chapter 7 bankruptcy there are some rules. You can only file Chapter 7 if your income is below your state's median or is not enough to pay off your current debt.
Yes you can. But if there is still a lienholder- the sale price must cover the entire lien amount.
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 "exemption".
Because of the "automatic stay", which goes into affect as soon as a Bankruptcy is filed, your car cannot be re-possessed while the Bankruptcy is in progress (unless the creditor files a motion with the court asking for relief from the automatic stay). However, as soon as the Bankruptcy is discharge…d or closed - which occurs approximately 6 months after it is filed - the car can be re-possessed. (MORE)
If it was a secured loan, you either reaffirm or surrender the collateral. If it was an unsecured loan you can pay it off. Do not repay in regular monthly installments or you may reinstate the debt. If it is close to the date your c 7 was closed, I do not advise you to pay it off right away. If it i…nvolves paying a relative or friend, wait even longer. (MORE)
Maybe, it depends on whether or not the debt is secured and the secured amount. If you own it free and clear, and is very valuable, it will be seized and sold by the trustee. If there is a secured creditor, but the claim is small and the car value is great, it can still be seized, with the secured c…reditor paid off, you receiving the exempt amount, and the remainder to pay off creditors. (MORE)
I am going to stick my neck out and say, Probably Not. I do not think a lending institution would like someone who is making loan decisions to be a delinquent when it comes to their own debts. Most places(financial institutions especially) will run credit checks on perspective employees.
Chapter 7 bankruptcy is also known as total bankruptcy. It's a wipeout of many (or all) of your debts. Also, it might force you to sell, or liquidate, some of your property in order to pay back some of the debt. Chapter 7 is also called "straight" or "liquidation" bankruptcy. Basically, this is the …one that straight-up forgives your debts (with some exceptions, of course). . (MORE)
If the accident was not caused by drug or alcohol or deliberately, the judgment can be discharged in bankruptcy. You cannot file just for the judgment. ALL creditors must be listed, and you might have to do a chapter 13.
They have wide discretion to leave a case open as long as they feel necessary to determine whether fraud is being perpetrated or whether unexempt assets can be obtained.
You can get a car lease immediately after filing for Chapter 7 bankruptcy. Since it would be a post-petition debt, there is no waiting period provided that you qualify income wise. Some lenders may require you to have a discharge, however, it is not required under the law to lease post-filing.