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Car Financing, Sedan
#832 of 860 Leasing during and after Chapter 13.
Jun 25, 2007 (2:20 pm)
I tried to find an answer to this, but could not. I hope you guys have one. I have always had good credit. I leased a vehicle 2 years ago during this time of having good credit. A year ago I was told that my child has autism and this has caused me a great deal of financial issues which became so hard for me that I filed a chapter 13 because I wanted to at lease pay my debtors back some of their money.
What will happen to my lease agreement now that I have done this? Its been a year and I have been paying everybody back, but I never put the leased vehicle under the chapter 13. When my lease agreement is up 1 year from now, will they allow me to lease another vehicle knowing that during my agreement, I filed chapter 13 and will they eventually be wanting their car back during the time I have it now?
Since I know my credit has been effected, what can I expect the dealerships to tell me when I come to the end of my lease agreement? I worry that they will take the car and I will not have anyway to get myself or my autistic daughter to various necessary places because of her condition.
If any of you have some suggestions or if you have gone through this before, please let me know.
I was living from paycheck to paycheck
#833 of 860 Re: Leasing during and after Chapter 13. [6ftladycop]
Jun 25, 2007 (2:28 pm)
If you are actively in a 13 when the lease terms you will have a hard time leasing another vehicle. To my knowledge none of the captives will put some one on the books while they are in a 13. You best case scenario will be to buy out the lease you have through a special finance company at high rate of interest.
#834 of 860 Re: Leasing during and after Chapter 13. [joel0622]
Jun 25, 2007 (5:30 pm)
Can I buy out the vehicle through a financing company before the lease terminates or do I have to wait until that exact day. Also someone ask me just now does this apply to folks with bad credit as well even if you did not file bankruptcy?
#835 of 860 Re: Leasing during and after Chapter 13. [6ftladycop]
Jun 25, 2007 (5:49 pm)
You can buy your lease out at any time. Its just a matter of finding a lender who is willing to take the risk.
The reason they don't like to do it is because historically people in Chapt 13's stayed in them for about 6 months, said to hell with this, and filed for Chapter 7.
With the new bankruptcy laws I don't know if it is still possible.
I think that you are probably going to end up shopping on note lots for awhile unless you or the dealer can find a lender sympathetic to your situation. But even if they say yes you are going have a interest rate in the 20-25% range.
Allot of note lots charge no interest on there accounts. I don't want to tell you how to spend your money but I know what I would do. I would save a $1000 and head to a nice note lot.
Feb 11, 2008 (2:45 pm)
A national newspaper is looking to speak to consumers who have had a tougher time getting a car loan recently. Please respond no later than Feb. 15 with your daytime contact information to Chintan Talati at ctalatiedmunds.com.
Apr 15, 2008 (5:45 am)
A reporter from a large daily newspaper hopes to speak with consumers who have had difficulty obtaining credit for a vehicle purchase. If you’ve had difficulty, please respond to ctalatiedmunds.com with your daytime contact information no later than Friday, April 18, 2008.
Apr 22, 2008 (5:03 am)
A reporter wants to interview people who have been turned down for a loan, surprised by high interest rates or otherwise run into the effects of the tightened credit market while shopping for a car. If this describes your situation, please respond to jfallonedmunds.com with your daytime contact information no later than Wednesday, April 23, 2008.
#839 of 860 Re: Ch. 13 Bankruptcy - trustee objects to car payment [donnah]
May 03, 2008 (3:56 am)
Update on my comments:
Last November I was able to purchase a 2007 Hyundai Azera Limited, after approval by the trustee. My monthly car payment was $100 less/month. I was able to finance the vehicle for 1.9% with no problem. I just ran my credit report and my average credit rating is 660. The bankruptcy is in the process of being discharged. So anyone else out there that had to file Ch. 13, know that you can work with your attorney and trustee when there is a reasonable need for you to make a vehicle change during the bankruptcy period. All in all, it worked out great for me, and for some reason my credit rating is pretty good right now.
May 07, 2008 (4:09 pm)
A reporter with a large national newspaper is interested in talking with consumers about their experience during this economic downturn and if they might have lost or had their car repossessed. If oyu are in this situation,, please contact Chintan Talati at ctalatiedmunds.com no later than Friday, May 9.