yehong

Hello. Need some help with this situation. If someone has following two options, which one would you prefer? Total Unsecured Debt: $27000 called Credit Card companies, following two options are being offered: Option A: Pay off balance in 60 months at 0%. Accounts will be reported current after 3 payments. Option B: Settle at 50% of total balance and pay in 12 months.

Active ch13, got at least 2 more years to go. Credit score TU: 647 checked about two weeks ago. Every baddies that you can think of is in ch13 except for repos. Current on mortgage. City and CapitalOne were amongst the accounts listed in ch13 so that might be the reason for their denial.

Sounds like a plan to me, thanks @cv91915! Also, an off topic but related to my situation. I applied for "secured" credit cards last night with City and CapitalOne and both got declined. I was thinking about rebuilding my credit and scores so not sure if there's any other option that I should try. I am surprised that the credit card companies had zero risk with secured credit card but they still didn't approve it.

20.7% or in simple words 21%.

Question. Once Ch13 is paid off/discharged, would it be possible to get re-financing from other lenders that don't charge excessive interest rates? I had asked this question to a Credit Union and they said they will approve a loan but 12 months after the discharge.

If this is a common clause for most auto loans, then I don't have concerns. I would be concerned if only this lender did that.

What I meant to say was say if a payment arrives late due to any reason, will the lender charge additional interest on that payment only and for the days it was late Or the total balance would go up? And will they prorate rate monthly interest and charge for the days it was late or how will they calculate interest? Is this a common clause? Because I've never seen it with mortgages or with my previous auto loans or auto leases as far as I remember. They all usually charged late fees.

And I am not understanding this clause:

After reviewing the contract, I see following : Does that mean if the loan is paid off early or if car is sold half way or if it's refinanced, there won't be any "unclaimed interest" for the remainder of the payments that the lender would require to pay?

So I did sampling and except for one review, all were negative. I will review the contract and get back but I remember was told by finance manager of no pre payment penalty. So there are no other lenders that offer loans to people who are in bankruptcy and also have good customer service?

I've read so many negative reviews and horror stories about them after I googled them up recently. Is there a better alternative to them for people who are in existing bankruptcy? I have heard in reviews that they charge unclaimed interest if a vehicle is refinanced or sold or traded half way from the original term duration? Is it legal?

@centex Please rest assured. I gave you 100% complete information. I reapply appreciate for all the replies. They were very helpful and hope they will help resolve this issue. Kind Regards @MarvBear @cv91915

Thanks for your insight! I am pretty sure many people go through this situation everyday and not everyone can afford to use legal system due to costs so when we come here to seek advice we are trying to find options. Like "The snake dies and the club doesn't break".

@marvbear Thanks! Re #4, just realized the buyer would still have to go with the same lender if dealer is willing to allow different vehicle purchase. It was very hard to get financing in the first place due to Ch13. Also, you mentioned since 1st payment is not made yet, it might give buyer some advantage. Can you please explain how the buyer should use that leverage?

@MarvBear Prestige Financial