I already have a checking account. Why would I want to open another one?
Only companies do Chapter 11. Why would I want to do a Chapter 13? That's a total waste of time. That's like not even filing bankruptcy at all. All that does is stall them. I want to do a Chapter 7 and just clean the slate. I can't wait YEARS. We need 2 cars NOW and I'm not going to throw money into a junker and get it fixed all the time. We did that before with 3 used cars before. I learned my lesson from those.
What about putting 50% down or more after a Chapter 7? Won't that work? It will take too long to save up $17,000 cash.
Why would I want to do a Chapter 13? That's a total waste of time. That's like not even filing bankruptcy at all. All that does is stall them. I want to do a Chapter 7 and just clean the slate.
[*shrug*]
It's your call, but get used to not having any credit at all for at least the next ten years. At least with a Chapter 13 you emerge with a credit score. You have repaid your obligations, or at least enough of them to demonstrate that you're a somewhat-decent credit risk.
Quote:
Originally Posted by homeslice
What about putting 50% down or more after a Chapter 7? Won't that work?
No, it won't work. It might if you were doing a Chapter 13, which shows intent of repaying your bills, but with a Chapter 7 you're demonstrating that you'd rather just cut & run. No one will finance a car with you if you do that.
Quote:
Originally Posted by homeslice
It will take too long to save up $17,000 cash.
Look, you can't have everything in life. Y'better get used to the idea now, while you're still young enough to do something about it.
No, it won't work. It might if you were doing a Chapter 13, which shows intent of repaying your bills, but with a Chapter 7 you're demonstrating that you'd rather just cut & run. No one will finance a car with you if you do that.
Someone who just filed chapter 7 can't file again for... 7 years? Financing would be guaranteed to be free of another bankruptcy filing so in some senses it's more secure. With the large down payment, repossession is less of a problem as well.
There are plenty of places out there ready to gouge the susceptible customer.
I can't do a Chapter 13. I have way too much debt. There's no way I can pay back $360,000 on a $40-50k income. I was making 6-figures at the time of most of the debt and the hospital bills came and I have a ton of debt from long ago. I need debt-relief.
If I have to live without credit for the rest of my life, I would be better off. Credit is not free. We're all better off without it unless everyone was offering 0% on everything.
I've been trying like mad to buy a used smart all over the state of Florida before doing the bankruptcy. The best deal I've seen was a passion in Palm Beach with 1500 miles on it for $12,895. Other people are asking up to almost $15k for the same car. I don't know why people are asking so much for a car that for just a few hundred more you could buy a brand new 2009 and get a full warranty... when the 2008's will be considered to be 2 years old once the 2010 models start coming out in a short time. By then these cars will start the black book values at $7,000 to $8,000.
The blue book values are supposed to be based on actual transactions. If the Smarts continue to sell fo "just a few hundred" less than new, that's what the blue book value should reflect. The market shouldn't follow the valuation, the valuation should follow the market.
As fewer smarts are introduced into the new-car channel (as witnessed by the recent new car sales trend) and gas prices again rise, the demand will outstrip supply, shoring up the higher resale values.
I can't do a Chapter 13. I have way too much debt. There's no way I can pay back $360,000 on a $40-50k income. I was making 6-figures at the time of most of the debt and the hospital bills came and I have a ton of debt from long ago. I need debt-relief.
Do you even know how a Chapter 13 works? You might want to do some homework on this with a credit counselor or bankruptcy lawyer first, before signing the next seven to ten years of your life away...
Basically your creditors agree in writing (or occasionally in open court) to forgive part or most of your debt (in my case it was 75% forgiven), and you agree to pay back the remaining portion, giving first-priority to making those payments to the Court (who act as the itermediary) before any other payments are made. You get an allowance for living expenses, and every other red cent you earn goes to the plan. You do not have to attach all of your assets to the plan - I got my house taken off my Assets List and split out from my obligations list because my mortgage was up-to-date when I filed. But I still had to pay the Court before I paid my mortgage payment.
Make your payments on time, and you're golden. Blow off a payment, and they can and will come after you for the entire amount. That's the deal you sign and the arrangement you agree to live with. But at the end of the plan, you emerge with the Court's blessing and a credit reference. File Chapter 7 and you're dead for a decade, and possibly longer, as far as your credit scores go.
I got out from under a bigger rock than you're dealing with on a smaller income than you have on a Chapter 13 plan. And I'm sure I'm not the only one here whose had to go down that road. So you ought to think twice about it before dissing it out-of-hand. I'm just sayin'.
Last edited by The Rigger; 06-13-2009 at 09:48 AM.
Someone who just filed chapter 7 can't file again for... 7 years? Financing would be guaranteed to be free of another bankruptcy filing so in some senses it's more secure. With the large down payment, repossession is less of a problem as well.
I'm not sure any more - the law has changed since I went through the system, 13 years ago - but you couldn't file again for at least seven years, and more like ten.
But financiers don't look at the picture that way you describe, they see "Chapter 7 = cut & run. He couldn't pay his bills then, what makes him so sure he'll be able to now?" and shy away.
There's no way I could even dream of trying to pay back $90,000 with a Chapter 13. My mom filed Ch. 7 and bought a new house and cars 2 years later. It's not that big of a deal. You just pay a little higher interest after 2 years. I will have almost 70 people to list on my discharge. I could buy many smart cars for cash instead of paying that $90,000. I am struggling as it is without paying any of the current debts. Most people who file a Ch. 13 are not able to continue the payments for 5 years.
I want to pay cash the rest of my life. Credit won't be important to me anymore. For all of the money I'll be saving on interest, I will be able to buy 10 smart cars.
I am just trying to get approved right now before I hit the 25% interest mark post-bankruptcy. If I can't get approved now, so be it. Then I'll just have to wait 8 to 12 months and pay cash for a 2010 smart fortwo in the future. It will just suck having 1 car between me and my wife. Neither of us have day jobs right now anyway. But in the future my wife is looking to go back to college and I will want a job after the bankruptcy, so we will need 2 cars at that point. I am hoping to get filed in August or September. Then 2 months after that, the discharge follows. Then after that, there's that 2 year waiting period for the interest rate to drop.
You shouldn't be able - legally - to get a loan approval pre-bankruptcy and get the loan post-bankruptcy.
That's just... wrong.
Part of the reason you might get approval is because you don't have any bankruptcies. Also considering many approvals are good for only a short amount of time, I'd recommend applying for approval after the filing.
That's only if you get credit and then attempt to discharge it. Many people will go on a shopping spree and claim bankruptcy and try to keep everything for free. I'm not doing that at all. That would be fraud. I am attempting to get a car that is reasonably priced and fits within our means and intend on continuing the payments long after the bankruptcy is filed. Even my attorney recommended it. In fact, I've heard of other attorney's recommending to other clients to get cars before the bankruptcy is filed.
I spoke with 3 car dealers so far who all told me the same thing... once the bankruptcy is on there, they will not be able to help me.
I just got approved from one place with a couple grand down. I'm waiting to hear back from another dealer who's selling a fortwo that's a couple grand less to see what they say.
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