Credit - Tying Up Loose Ends, Part 3
It could be possible to put aside the car note money for awhile and buy a junker outright.
It won't be pretty.
It might break down more often, but it might get you where you need to go until you can afford something better.
It is possible to get a car loan after a bankruptcy.
It has to be completely over.
Car loan companies will want to see a copy of your discharge order.
You will certainly pay a higher interest rate than people who haven't gone through a bankruptcy.
And it's a good idea to have a large down payment.
But if you're not making car payments, you might be able to get the money together.
If you decide to give back your car and owe nothing, you may not have to surrender it right away.
Once you file the bankruptcy, you can't give the car back without the permission of the court.
Even though it's clear the trustee won't want to take the car, you've got to wait until he or she officially abandons any interest in it.
When you filed, you received an order from the court warning you not to dispose of any of your property.
Everything came under the jurisdiction of the court.
In a Chapter 7 bankruptcy, it's up to the trustee to decide if you have anything that can be sold to pay your creditors.
If the trustee took your car, he or she would have to pay the car loan people first.
Obviously, that won't work if the car note is more than the value of the car.
Houses-Reaffirmation A house presents a similar situation.
If you decide you want to reaffirm your mortgage, you'll want to sign an agreement that will then be submitted to the court.
Like other such agreements, it will have to be signed by everyone-you, them, your lawyer-and filed before your discharge order is entered.
Often, for various reasons, no reaffirmation agreement will be filed in time.
In that case, you are okay as long as you keep making payments.
They can't take back the house unless you fall behind.
Surrendering a Lease If you decided to get out of an expensive apartment lease as part of a Chapter 7 bankruptcy, you should make plans to move as soon as possible.
Your landlord can't evict you during the three months between filing and discharge, unless he already had an order for eviction before you filed bankruptcy.
But even if you manage to stay, you may be liable for the rent after the filing and until you move.
It won't be pretty.
It might break down more often, but it might get you where you need to go until you can afford something better.
It is possible to get a car loan after a bankruptcy.
It has to be completely over.
Car loan companies will want to see a copy of your discharge order.
You will certainly pay a higher interest rate than people who haven't gone through a bankruptcy.
And it's a good idea to have a large down payment.
But if you're not making car payments, you might be able to get the money together.
If you decide to give back your car and owe nothing, you may not have to surrender it right away.
Once you file the bankruptcy, you can't give the car back without the permission of the court.
Even though it's clear the trustee won't want to take the car, you've got to wait until he or she officially abandons any interest in it.
When you filed, you received an order from the court warning you not to dispose of any of your property.
Everything came under the jurisdiction of the court.
In a Chapter 7 bankruptcy, it's up to the trustee to decide if you have anything that can be sold to pay your creditors.
If the trustee took your car, he or she would have to pay the car loan people first.
Obviously, that won't work if the car note is more than the value of the car.
Houses-Reaffirmation A house presents a similar situation.
If you decide you want to reaffirm your mortgage, you'll want to sign an agreement that will then be submitted to the court.
Like other such agreements, it will have to be signed by everyone-you, them, your lawyer-and filed before your discharge order is entered.
Often, for various reasons, no reaffirmation agreement will be filed in time.
In that case, you are okay as long as you keep making payments.
They can't take back the house unless you fall behind.
Surrendering a Lease If you decided to get out of an expensive apartment lease as part of a Chapter 7 bankruptcy, you should make plans to move as soon as possible.
Your landlord can't evict you during the three months between filing and discharge, unless he already had an order for eviction before you filed bankruptcy.
But even if you manage to stay, you may be liable for the rent after the filing and until you move.
Source...