How Soon Can I Finance A Car After Bankruptcy?
Bankruptcy filers are usually able to finance a vehicle immediately after bankruptcy. In part, this is because the vehicle finance companies are aware that a consumer can only file a chapter seven bankruptcy once every eight years. In addition, they know that the bankruptcy filer doesn’t have any other debts. This makes them a safe bet, so to speak. However, while bankruptcy filers might be able to obtain lending very quickly after bankruptcy, consumers should be cautious about the nature of the loans that they qualify for. The loans that are available to them immediately after the bankruptcy filing may have higher interest rates and more aggressive terms.
What Happens If I Fall Behind In Payments After Filing a Chapter 13 Bankruptcy?
The impacts of falling behind on payments in a chapter 13 case vary depending on the circumstances. If it is the first time that the filer has fallen behind and they are only a few days behind, there may be no impact at all. If the filer has fallen behind several times and they are several months behind, then it could result in the dismissal of the case. Usually, if a consumer is falling behind, they should communicate with their attorney so that proactive steps can be taken. They should try to get their payments back on track as quickly as they are able to.
What Is The Reaffirmation Agreement And How Does It Work?
A reaffirmation agreement is an agreement that’s filed within the bankruptcy case, and it essentially asks the bankruptcy judge to make an exception for whatever the debt is. Oftentimes, re-affirmation agreements are applied to car loans. In some instances, they are applied to mortgage loans, and in other instances, they are applied to other secured debts, such as financed furniture. A re-affirmation agreement essentially discloses the terms of the loan and discloses how much money is in the bankruptcy filer’s budget. It also asks the court to allow the filer to keep the loan in light of what should be the available income. In some instances, a judge may decline a re-affirmation agreement if they feel that the terms are unreasonable or if the payment is unaffordable to the filer.
Can Someone Make Payments On a Discharged Debt Without A Re-Affirmation Agreement?
A bankruptcy filer can elect to voluntarily make payments towards a discharged debt, but the lender cannot take steps to collect on the debt. So, it would be purely voluntary on the part of the filer. Sometimes there are strategic or even personal reasons why a bankruptcy filer might voluntarily make payments on discharged debts. For example, if there is a medical service provider that the consumer has a relationship with, they may elect to make the payments on that debt. But again, it’s instrumental that it’s truly voluntary on the part of the file.
What Are The Steps Someone Should Take at The Conclusion Of Their Bankruptcy?
In a chapter seen case, one of the last steps made by the filer is to complete the post-bankruptcy financial management course. This course is available online and is typically available after hours. If a chapter seven filer has any non-exempt property, meaning property beyond the limitations that they are allowed to keep within a chapter seven case, then they will have to make arrangements with the chapter seven trustees in order to resolve the non-exempt property. In a chapter 13 case, the bankruptcy filer will first have to complete their chapter 13 payments. They will also have to complete the second credit counseling course and financial management course. They may have to file certain documents with the court or with the trustee towards the conclusion of their case.
Additional Information On How To Proceed After Filing For Bankruptcy
I would just emphasize that if there are debt collection efforts made by creditors after the bankruptcy has been filed, whether they are phone calls, letters or other activities, we would welcome an opportunity to speak with any affected consumers. Oftentimes we can address claims against those creditors, regardless of whether or not we represent the consumer in the bankruptcy.
For more information on Financing A Car After Bankruptcy, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (727) 538-4188 today.
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