Auto Loans After Bankruptcy: Helping Bankrupt People to Own Vehicles
Author: Herry Marker
The auto loan companies are making a car loan much easier after bankruptcy, availing this particular option will also be a smart move from your end to come out of the recent bankruptcy situation.
By availing auto loans after bankruptcy you may not get the normal rate of interest that is available but there are ways by which you can bring down the rate. One possible way is to apply for the loan with a co-signer who has an exceptional credit record. In this case the co-signer is also responsible for the repayment of the loan and thus helping you to get the loans at a lower rate of interest. The other is by pledging collateral of a higher equity value. It is always advised that you finance an old vehicle in the beginning to come out of the bankruptcy situation. This will help you, because you will have a much lower burden in terms of the repayment. Usually the interest rate of auto loans after bankruptcy will go as high as 18% in case you do not have a co-signer for your loan. But the normal rate of interest varies from 9% to 10% which you can avail if you use any one of the above methods.
The period of repayment varies from 1-5 years of time and thus it is very much important that you complete the repayment process with in that period of time. It is always advised that you choose a low cost vehicle, because the principal amount of the loan will vary according to the cost of the vehicle that you will purchase. The main thing that needs to be kept in mind while choosing for the auto loan after bankruptcy is the loan quotes of the different lenders. The rate of interest varies as per the market situation and so knowing the loan quotes will help you to bargain at the time of approval of the loan. Successful completion of the repayment plan will help you to increase your credit score to a large extent after which you will be eligible for any loan that you apply.
Article Source: http://www.articlesbase.com/loans-articles/auto-loans-after-bankruptcy-helping-bankrupt-people-to-own-vehicles-702396.html
About the Author
Herry Marker is a senior finance market analyst and gives his useful advice by his articles. To know more about Auto Loan, Bad Credit Auto Loan, New – Used Car Loan, Fast Car Loan. You can visit http://www.uscarcredit.com
How do I file a motion for a redemption of an auto in Chapter 7 Bankruptcy?
I gave a notice of intent for redemption to an auto lender to buy out a loan on a car that I have that is now worth far less than the outstanding amount on the loan because it has a bad transmission and other problems. I contacted the lender and they say they won’t negotiate in redemption and I won’t reaffirm my loan. I need to file a motion for a hearing so that I can show pics and give evidence of the cars condition and force the judge to make the decision on how much it would cost for me to buy out. How do I file my own motion and is there a fill in the blank form I can use. Would a paralegal be able to do this for me at a minimal fee?
does anyone know of any lenders that will do auto financing with repo, bad credit, and bankruptcy?
Can I negotiate with auto lender when in bankruptcy?
I refinanced an auto loan in 12/04. I recently filed bankruptcy (cht. 7) and the lender sent me a notice to send them the balance which is 4600 within the next 10 days. I want to keep the car but cannot afford to pay it off and need the lowest payment possible to reaffirm the loan. Is there any room for negotiations or is the ball in their court. Payments are 281 per month and i havent paid since august 07. Please help me ASAP in NJ. I did bankruptcy myself
Is there an auto lender in the dallas/ft worth area who will approve a loan while in a bankruptcy?
I need a vehicle but can’t find a lender who will approve a loan while in a bankruptcy.
after bankruptcy auto lenders in san diego?
private sellers also
If you still want to keep the car you are better to file for a Chapter 13. Chapter 13 is for repayment plans (keep properties) while Chapter 7 is for a discharge (don’t have to pay back) with liquidation of items (sell).
Once you have filed for bankruptcy the creditor (the lender) is by law NOT allowed to contact you. So, in sending you a letter for a collection they have violated the law. After a debtor files for bankruptcy the “trustee” (each city has one) will be in charge of negotiations for the creditor and only they can contact you on the behave of the creditor/lender.
In a Chapter 7, there is not much room for negotiations because in exchange for a discharge of your debts (not having to pay back) they have the right to reposes your car, sell it, and give the money to the creditor.
In a Chapter 13, you can negotiate to lower your monthly payments while keeping your car. This should be done with the trustee and not the creditor.
If you can, please get an attorney and have the attorney negotiate with the trustee and creditor because it sounds to me like the lender is taking advantage of the fact that you don’t know much about bankruptcy law.
You are not supposed to open any new debt while you have an open bankruptcy case.
They will not grant you credit because you could discharge them through your bankruptcy.
Your best shot is a local buy here pay here or you can wait until your bankruptcy is discharged.
You obviously have done your homework. But a little knowledge can be dangerous: watch out! And note: redemption depends on your (federal court) district, and also on when you filed for bankruptcy since the law changed dramatically last year.
“Cars are also harder to redeem in Chapter 7 cases, since the law now requires paying the lender the retail replacement value of the car. That value is generally higher than the private sale value that was commonly used under prior law. It remains possible for a debtor to surrender a car when keeping up the payments will be impossible.” http://bankruptcy-law.freeadvice.com/consumer_bankruptcy/bankruptcy_car_loan.htm
A paralegal can do nothing more than fill out a printed form on your instructions. Even selecting a form can open him or her out to a charge of unlicensed practice of law and a fine or disgorgement of fees present and past.
In any case, it seems you need to file a motion with the court to set a value. The exact wording isn’t so important as notifying the court and the lender of what you propose. Since bankruptcy files are public records, you can go to the court and look at random files until you find what you want. You can probably locate a redemption motion by searching the dockets on the computer.
You can actually do this at home if you take out a subscription to PACER ( http://pacer.psc.uscourts.gov/ ) and your county law library may well have such a subscription you can use. (Many or most districts also make it possible to download documents in PDF format. The charge for viewing and downloading via PACER is 8 cents a page.)
Alternatively, a free law clinic might give you a model form.
How successful you will be depends on the judge, the aggressiveness of your lender and how the new law is being implemented.
yes their are many and buy here pay-here is always an option… the problem with buy here pay here is whatever you put down in payment usually equals the price the dealer paid for the car. you end up paying way too much for the auto. I would need to know if you have all of those problems(Repo, bankruptcy, bad credit etc) many small car lots offer second chance financing for every type of bad credit. remember that money down can help you overcome any type of bad credit. if you need a source of lenders tell me more about your credit situation and I’ll give ideas. just be realistic in what you will get. try and keep the loan to 12-24 months and make sure the car is not over seven years old and has less then 125,000 miles. oh and please make sure the dealer will let you take it to a mechanic before you own it.