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Bankruptcy and Vehicle Financing



  • mazdaprofourmazdaprofour Posts: 202
    Just to let you guys know, I am still alive. I am reading the posts and just taking it all in.
  • jb_thecserjb_thecser Posts: 24
    What happened on Friday, Mazda? Anything?
  • mazdaprofourmazdaprofour Posts: 202
    Thanks for asking Jb, I went to the law firm in downtown atlanta. They are a walk in set up. So I go in and the receptionist hands me like 5 forms and I fill them out. She tells me that they have a few people ahead of me and if I could come back in an hour. So me and the wifey, go to out and have lunch and come back. We go in and we area asked to wait another hour, so I was upset. I just asked for my paper work and left. If I have to wait that long prior to hiring these people, I wonder how long I would have to wait to get some help at a later date. I am going to see another lawyer on Thursday. Hopefully this one will be better. The unfortunate thing is that most lawyers are not very organized or good at being on time. We shall see.
  • jb_thecserjb_thecser Posts: 24
    Sounds like you're dead set on filing. I hope it's easier on you than I think it will be. I honestly think you're choosing the path that seems easier now but will be harder in the long run.

    Good luck.
  • rubicon52rubicon52 Posts: 191
    Mazda presented his situation to Discover in a reasonable manner and Discover unreasonably refused to lower the interest rate on Mazda's credit card.

    Suppose Mazda buys his Kia with a 20% loan and a year later Kia runs into financial difficulty. I'm sure that Kia could approach Mazda and he would agree to let Kia raise his interest rate to, say, 40% to help out Kia.
  • mazdaprofourmazdaprofour Posts: 202
    rubicon, I am sensing some sarcasim from you. But anyway, it was funny.
  • andre1969andre1969 Posts: 23,522
    ...sometimes these banks and other lending institutions almost set you up to fail. For instance, what's the first thing they do if they view you as a bad risk? They raise your interest rates. Well, if you're likely to default at, say, 10%, wouldn't it be safe to assume you'd be even riskier at 20-25%?

    Of course they need to do this to compensate for all the deadbeats, and all the times they get screwed over themselves. But all it does is make it harder for the little guy who doesn't have a lot of money or credit, but will work his [non-permissible content removed] off to make the payments.
  • I see you are also in Atlanta. Have you tried Rick Case Hyundai? I understand that they are Hyundai Motor Credit's largest customer. They may be able to get you a little better deal. I think you might enjoy a Hyundai more than a Kia as well.
  • saturnfansaturnfan Posts: 40
    If those are your choices, Hyundai would probably be a lot better.

    I was able to qualify thru Ford Motor Credit for a new car loan at 14% only 2 years after Ch 7.

    If you can wait or can come up with a good down payment, you may have more choices open to you.
  • mazdaprofourmazdaprofour Posts: 202
    clay, that is the dealer that I went to. It was the place that I test drove the accent. The funny thing is that I bought my mazda from rick case mazda that is right next door to huyndai. The sales rep from hyundai wants the sale so bad that he keeps calling me like once a week to se if I have filed yet. They seem to be a good dealer. I did not like rick case mazda as much.
  • It's good to see that they want your business. It will be a few months, though, before you're discharged.
  • mazdaprofourmazdaprofour Posts: 202
    they told me that they do not need a discharge letter.
  • jb_thecserjb_thecser Posts: 24
    You ARE going to go right out and get a new car?
  • mazdaprofourmazdaprofour Posts: 202
    I might and I might not.
  • jb_thecserjb_thecser Posts: 24
    I've tried to give you the benefit of the doubt and even wished you well in your future endeavors.

    Now you're gonna go right out and start the cycle over again? You claim to be having a hard time with this and say how you're losing sleep, gonna do it right this time, etc., and now it sounds like you're on your way to getting a new car right after you're done. Maybe creditors will get a clue and stop lending you money at some point. I sure hope so.

    I give up. You know what they say about a fool and his money...
  • mazdaprofourmazdaprofour Posts: 202
    thank you sir
  • lleroilleroi Posts: 112
    Car dealers everywhere advertise"no credit bad credit and bankruptcy no problem".Since most states let a person keep their house the car is usually the largest dollar amount item defaulted on.If they want to "give" you a new car take it.

    Look at you at your own situation..One store of a multi-line dealership buries you in a car that you can't pay for.You return the car ,owing much more then it's worth.To them you are a bad person -a deadbeat-shame on you.Go 50 feet further down same company different make and you are "a hot prospect".Is this a great country or what?

    To store no.1 you are a terrible person -a person who causes the interest rates to be higher for "us" good people.To store no.2 you are a person who has experienced some credit "difficulties",but they will do their best to get you a good deal at a good rate.Who is right?Who cares?
  • fezofezo Manahawkin, NJPosts: 10,376
    "To store no.2 you are a person who has experienced some credit "difficulties",but they will do their best to get you a good deal at a good rate."

    This is where your theory really hits the skids. They won' give a hoot about a good rate - just selling the car.

    I'm staying away from the ethical aspects of this whole thing and just staying with the facts as I best know them. Folks with a repo an certainy don't get teh best rate. They'll get a loan all right - but not at a good rate.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • joe2617joe2617 Posts: 88
    Even if the dealership gets you approved your judge for the bk needs to give the ok for the whole deal. Also it sounds like Mazda hasn't filed yet. The judge may just as well dismiss the bk and not let Mazda file. You don't just walk into court and say" hey, I want to write off all of my debts because I bought too much stuff and can't pay for it."
  • The BK judge will ask you many questions. Where did the debt come from? Do you anticipate upcoming financial windfall--by inheritance or other ways? Also, you will want to reaffirm your car loan(s).
  • mazdaprofourmazdaprofour Posts: 202
    Joe2617, tell me how it works? Cause you do just walk in and have a 5 minute hearing with a trustee. Only standard questions asked and no moral issues involved. Thanks.
  • mazdaprofourmazdaprofour Posts: 202
    well I do not own a home, do not have any money saved up, no 401k no pending lawsuits and nothing else that has any cash value. The process itself is not hard. The time spent reparing the credit is hard and long.
  • It won't take long, but there will be a list of questions. He will want to know if you have equity in life insurance. They will ask many questions--there is always the chance he won't sign it if he does't like your answers. He won't get into any morals or anything, though. He'll ask his questions and then move on to the next guy.
  • mazdaprofourmazdaprofour Posts: 202
    unless you lie and are caught or hide assets, you are almost garunteed it. I have yet to hear of one person that got turned down. Even in a worst case situation, some assets might be sold to pay backl debt. In my case, nothing to be sold.
  • joe2617joe2617 Posts: 88
    Nobody said there were moral issues. I'm a finance manager at a dealership and I have seen many bks dismissed. If you earn 100k a year and have debts of 50k do you really think you can just write the debt off? If you have the ability to pay, they won't let you file or you can file chapter 13 which is really just a re-structuring. You make payments for 3 years then it's dis-charged. If they let you file a chap 7 then file. It's the quickest way to a fresh start. Most banks would rather see a discharged bk then omeone on the verge of a bk.
  • mazdaprofourmazdaprofour Posts: 202
    agreed but it all again depends on income vs debt.
  • afk_xafk_x Posts: 393
    I can't believe all these "moral" people. Give me a break! Companies that extend credit are taking a risk. They collect interest and they are for profit companies. Looks like in this case they made a bad lending decision. Take a good look at Providian. Morals???

    Some common myths dispelled - a high rate of default on loans will not make it more difficult for good credit people to get good rates. Consumer credit counseling can be a good idea but in many cases a BK is a MUCH better choice. By the way CCC is a non profit organization funded card companies.

    Back on topic - approval after BK isn't too tough as long as you go in understanding you WILL pay a high rate, have a good down payment, and solid income. I just did a deal where the customer had a BK discharged in December - had only one minor credit card for reestablishment - and with 1500 down got them 18.95% on a used car - 12.95 on a new car.
  • jb_thecserjb_thecser Posts: 24
    Deadbeats most certainly DO drive up the costs of doing business for all of us.
  • lancerfixerlancerfixer Posts: 1,308
    Out of curiousity, could you expand on your statement about BK sometimes being a better choice than CCC? I was always under the impression that a BK was the absolute worst thing you could do for your credit rating.
  • alfoxalfox Posts: 716
    an absolute last resort. Not so?

    'Course my thinking is on a moral basis, and you said to leave that all aside. So I guess if we agree that morals don't count we can stiff the creditors, right? Why not just look up their CEOs and paint 4 letter words in their front yards with fertilizer? Or key their cars? Morals don't count, right?
This discussion has been closed.