0
Can you get an auto loan after filing for bankruptcy but before it is discharged?
Wiki User
∙ 12y ago
Yes, you can get an auto loan before bankruptcy discharge.
If you have filed a chapter 13 bankruptcy, you must receive permission from the court trustee. Contact your attorney to begin the process. The court will set limits as to maximum loan amount and monthly payments. DO NOT apply for a loan of any type before getting approval from the court! Doing so could be grounds for dismissal of your bankruptcy, depending on the regulations of your particular court district.
If you have filed a chapter 7, there are certain automotive lenders who will finance you after you have attended the (sect. 341) meeting of creditors. However, if you are unable to find one of these lenders, your discharge is usually granted within a few weeks of the 341 meeting and you will be able to purchase then.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
How soon after filing a chapter 7 can someone take out a loan to purchase a car?
It used to be with a chapter 7, that you could go out as soon as your bankruptcy was discharged and get credit. In fact, you'd get credit card offers all the time. Not so much now with the economy the way it is. You should still be able to find some sub-prime auto financing, but be prepared to pay high interest rates for a while.
What are the advantages of filing for bankruptcy?
The advantages of filing for bankruptcy are different depending on which chapter bankruptcy is filed. Chapter 13 is more for home foreclosure and auto loans, it's advantages allow the person in debt to pay their debt back over a longer period of time and keep the things they have worked very hard for. Chapter 7 advantages are that the person in debt can make payments for less than a year and be debt free and most if not all of the unsecured debt owed can be dropped.
Recovering From Bad Credit?
One of the best ways to recover from bad credit after filing bankruptcy is to get a car loan and make the payments on time. Perhaps it is possible to get an auto finance loan while in Bankruptcy but, there are a couple of issues to note. The interest rate for an auto loan while in Bankruptcy will not be good. Bankruptcy Trustee approval is needed if you do finance a vehicle while re-paying a Bankruptcy. An alternative to traditional auto financing is to borrow money from a family member or friend. This will allow you to get the money needed for your next vehicle without the worry of finance fees or interest rates. It is important to know that this is a business transaction and a signed agreement will protect all parties involved.
If you filed for bankruptcy would the cosigner of your auto loan be forced to take over payment?
The answer is that the cosigner would be left responsible for taking over the payments. If the cosigner wants to maintain his or her credit rating (which is probably damaged due to your filing bankruptcy), If the consignor does not want the auto loan people to sue for any remaining balance, then he or she will need to keep making the payments. If the auto loan company sues for any remaining balance and gets a judgment, then the auto loan company will go after the assets of the consignor and or garish their earnings. attempt o seize their assets or garnish their earnings.
Can file bankruptcy stop creditor from collect debt?
Depends on the debt type. Federal loans, mortgage, auto loans, among other specific ones, can not be discharged and thus can continue to attempt to collect. A bankruptcy might delay it for a short time. In general, the answer is yes. Once a bankruptcy has been files, it will (should) stop the collectors from either calling or visiting you. Sometimes you have to show them proof of that. If they continue you may (again MAY) file a lawsuit against them. Every case is specific so there is not an universal answer. Hope this helps.
Does filing bankruptcy decrease the chances of you obtaining a home or auto loan?
Absolutely.
If you have affordable auto insurance before filing bankruptcy based on good credit do you have to tell the insurance company you filed?
BK will not affect any insurance policies that are already in effect.
Is it okay to purchase a car before you file bankruptcy?
Yes, as long as it is not excessive and you plan on paying it back. In other words don't buy a Mercedes if you usually drive a Honda. And any auto loan made within 910 days before bankruptcy cannot be discharged. So if you can't pay for it they can come repossess it.
Are there any legal issues if your bankruptcy that included your leased auto has been discharged and you fell behind on on auto payments?
You need to ask this of your B/K attorney for state specific advice.
Can a lender report repossession of a discharged auto?
If they repossessed it as part of the bankruptcy (and you didn't get it back), probably yes. However, the bankruptcy itself is a bigger black mark than the repo, especially since it can stay on your credit report longer (up to 10 years after filing, though some bureaus remove Chapter 13 after 7 years; repos only stay for 7 years).
Does bankruptcy cover your debt from being sued by an auto insurance company?
It may, I would make sure they are listed as a creditor upon filing.
Will a voluntary auto repossession still show on your credit reports after Chapter 7 is discharged?
Most likely. They are two separate issues.AnswerYes. It will show that you no longer owe the debt, as well. AnswerIt MAY show up, however, if the debt for the vehicle was discharged in bankruptcy, it cannot be reported. There can be no negative reporting on a discharged debt - not even for a voluntary repo. If the vehicle was surrendered as part of the bankruptcy, the loan should show as a ZERO balance, no past dues, and 'included in bankruptcy' on your credit report.
Can a person file bankruptcy on an auto accident claim?
Filing bankruptcy creates an "automatic stay" which is a court order stopping most efforts to collect a debt, including lawsuits. Whether or not you are eligible for a discharge of the particular debt depends on the type of claim filed against you. In the case of an auto accident, liability for death or injury resulting from driving under the influence of alcohol or drugs cannot be discharged. The decision to file bankruptcy and which type of bankrupty to file should be made after consultation with a qualified attorney. You must another an number of factors into consideration such as the amount of your dischargeable debt, value of your assets, income and expenses.
Will filing of a chapter 13 bankruptcy prevent Auto car repossession in new york state?
Yes, at least for a short time. But you will have to pay what you missed and borrowed in order to keep it.
Auto Loans Bankruptcy - Borrower, Beware?
If you have recently declared bankruptcy, you may be surprised to receive an offer for auto loans bankruptcy that promises you quick approval despite your financial status. Chances are that this offer is either an outright scam or a very limited loan at high interest with many restrictions. Auto loans bankruptcy are almost never offered by reputable lenders, and usually what you are really receiving is a solicitation from a credit advisor who may even demand a fee before searching for what he claims is an approved auto loan. Basically, auto loans bankruptcy are rarely available - so borrower, beware!
How long can you wait before filing an auto claim after an accident in Texas?
No time at all, call them right away.
Auto Loans for Bankruptcy?
Take any offer for auto loans for bankruptcy with many grains of salt. Very few lenders will lend any money to anyone who has recently declared bankruptcy, and any lenders that do offer such loans will do so at very high interest rates with very high penalties for late payment and default. Since you cannot declare bankruptcy again if you default on a loan soon after bankruptcy, auto loans for bankruptcy are risky for you but very profitable for unscrupulous lenders who prey on bankrupt individuals and entice them to take out loans before they have a chance to rebuild.
