Overhaulin'

How come people who have filed Bankrupcy can get credit cards or a new car loan?

My name is Alan and I am married with 2 plus children. I financed a used car through Americredit and I have a another loan through Triad Financial. At the time of purchase my wife was working. Together our income has been 60,000 plus per year. I recieved the news that my wife may loose her job at the end of June. Through a course of events the car that I got from Max Madsen has fallen apart. I owe $14,750 on the car and the car has been appraised for 2500 from car max. the car is 2 x 60 and 1 x 90 -- I have a van through Triad which is 1 payment behind. With all total debt I would say that I am in total debt of 30,000-40,000. I was recently in a carmax and they told me not to get another vehicle but to get rid of this car. I have been trying to find a car with rebates so I can apply the negative equity to the car. A salesman told me that he had a man that brought a capital one check for a car for 25,000 who just filed chapter. Is this a good idea. I am running in circles

Public Comments

1. Because after filing for bankruptcy you can't file again for 7 years. Which makes you a safe bet. ~
2. i know what kind of check you are talking about. i get them in the mail but usually those checks have A VERY high interest rate on them. so it takes forever to pay the check off. it's good if you can aford to make the monthly payments of the check but bad if you cant
3. It can help you but it'll cost you big in interest. Not very difficult to get money after chapter 7 businesses know that you need stuff and have better opportunity to pay it back with less bills. Now with that said you need to focus on tight small budget in order to keep the electricity on if you know what I mean Your situation sucks friend Don't have all the anuses but what I went through after my divorce from first wife credit cards are a necessity in order to build credit worthiness again just be careful. not to overextend yourself again.
4. they can get credit cards, loan etc even after going bankrupt, they can improve their near term credit score and get loans etc
5. I asked the same question several years ago when I first got into auto finance. I was told the the reasons are actually very simply. Once your bankruptcy discharges, you have no debt and can not file again for 7-years. This combination make you a better risk for the lenders then people that are actually trying to pay their bills but are having trouble like you right now. I know, it doe's not seem fair but that's the way it is.