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  1. #1
    Join Date
    Dec 2006
    Posts
    2

    Default Chapter 7 and buying a used car

    I want to list my current car in my bankruptcy (that I have not filed yet) because I am upside down. However, I need a car and want to buy one around or under $6ooo that I can better afford. I won't have much to put down on the "new" used car and I have not filed bankruptcy yet. My credit is not good. Are there car dealers that work with people like me that haven't actually had their bankruptcy discharged?

  2. #2
    Join Date
    Jan 2006
    Location
    Kentucky
    Posts
    70

    Default Re: Chapter 7 and buying a used car

    You may have an option to get a redemption loan. That's where you get a loan that pays off the car loan FOR LESS THAN YOU OWE. The bk court will have to approve the transaction, but generally do. Once you file, you'll probably get a solicitation offer from one or two companies that do these deals. On my offer, they valued the car at it's trade-in value, more or less, and that's what the lender agreed to take. Of course, this begins a new loan to the redemption lender, so you still don't own the car outright - but your monthly payment can go down quite a bit. One other thing - the new loan ISN'T subject to the protection of the bk case, so if you default later they have full right to repo, etc.

    Otherwise, you can surrender the car and find a new/used ride.

  3. #3
    Join Date
    Dec 2006
    Posts
    2

    Default Re: Chapter 7 and buying a used car

    Thanks. I'll look into it.

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