But where do debtors stand as far as being able to get auto financing after emerging from a consumer bankruptcy case? Here’s some information about getting a bankruptcy car loan.

It now seems that auto makers are eager to increase sales by greatly expanding the pool of loan applicants.

Auto lenders scaled back their lending during the financial crisis of the past few years. However, as reported recently in the New York Times, banks, as well as the lending arms of automakers, have entered into a new campaign to issue car loans more aggressively.
All borrowers, including those with tarnished credit histories, are finding it much easier to obtain vehicle financing compared with a few months ago.
Even consumers with sub-prime credit ratings are finding it much easier to get car loans now.
As we move through the recession, lenders are relaxing their standards for extending credit. For those emerging from bankruptcy, this is great news.
Getting a Car Loan After Filing for Bankruptcy
Car loans are often easier to get than credit card accounts after emerging from bankruptcy since car loans are secured debts. Thus, if you default, the lender has the legal right to repossess the vehicle which is the secured collateral. Credit card companies do not have such rights.

Here are ten tips about bankruptcy car loans:
1. Interest Rates and Down Payments
Most people seeking car financing after bankruptcy are able to get it — the key issues being the rate of interest and the amount of down payment required. Thus, almost anyone emerging from a bankruptcy proceeding should be able to get a car loan, although some lenders will require a relatively high rate of interest, and other lenders may require a significant down payment, or both.
However, as it appears that we are heading out of the recession, lenders are becoming anxious to originate more car loans. This means that consumers who have a bankruptcy in their past will likely be able to get financing at much more competitive rates — perhaps a lower rate of interest than before, or less of a down payment.
Even if you only qualify for financing at a relatively high interest rate, remember that the loan need not last forever. Although most car loans are for a period of several years, you can always try to refinance the car a year or two later when your credit is even better, in which case the interest rate should be significantly lower.

2. Consider Getting a Co-Signor
Another option to get a better financing deal is to find someone, typically a family member, who is willing to co-sign the car loan. Doing so will increase your chances of getting approved since it will reduce the amount of risk to the lender.

3. Discharge Usually Necessary
In order for a consumer emerging from bankruptcy to obtain financing, usually the bankruptcy case need not be over, but the Court must have issued an order of discharge.
A significant benefit of the bankruptcy discharge is that all dischargeable debts will be zeroed out on a credit report.

4. Car Loan Can Help Rebuild Credit
Another benefit of getting a car loan after bankruptcy is that it will help you reestablish credit. Showing that you can handle new credit after bankruptcy will make it easier to get additional accounts later on. Installment loans such as car financing are especially good at rebuilding credit, provided of course that you make regular and timely payments.
When you have a loan with regular payments, and you make them on time, a credit report indicates a “paid as agreed” status, which also gives positive points to your overall credit score.

5. Standard Qualifications Remain
Even without a bankruptcy, someone applying for a car loan needs to be able to demonstrate that they have a stable job, and sufficient income to be able to make the car payment as well as day-to-day expenses and obligations.

6. Bankruptcy On Your Credit Report Becomes Less Important Over Time
Also keep in mind that the more time that passes from the date of the bankruptcy filing, the less the bankruptcy will impact your credit score.
Generally, the first one-year period after filing is the most sensitive, and the bankruptcy will have the most negative weight. However, after that, the bankruptcy becomes less important over time as far as the credit score is concerned.

7. Consider Re-Establishing Credit First
If you don’t need to finance a car immediately after emerging from bankruptcy, you should first concentrate on rebuilding your credit. The better your credit, the better the terms of the car loan.

8. Consider a Used Vehicle
Most of the best deals can be gotten for a late-model, used vehicle. They will be less expensive and will offer the most bang for the buck.
Also, the less the car is, the less financing you will need.

9. Approach Your Prior Lender
If you currently or previously had a financed vehicle, and you made all of the payments, your best bet may be to seek car financing from the same lender. They already know you and they also know that you made all of the necessary payments.
However, if a prior lender repossessed one of your cars in the past, that lender may not have such fond memories of you, and may prefer not to deal with you again so soon.

10. Be a Smart Shopper
Whether emerging from bankruptcy or not, the same rules apply in searching for a car loan — shop several lenders and car dealers to get the best deal.
Terms can differ dramatically from one lender to the next so definitely shop for the best rates. Also, some lenders specialize in offering loans to those with sub-prime credit

Not so much on the Gridiron per se, though your legacy as a quarterback with the San Francisco 49ers will long be revered in the annals of football history, but as the voice of financial reason for dozens of players who can’t seem to manage their millions.

Indeed, Young, who earned his law degree between seasons during the 1990s and now serves as managing partner of a Utah-based venture-capital firm, is a rare example of post-career success.

Despite their median $900,000 annual salaries, a surprising number of NFL players (some estimate up to 80 percent) squander their fortunes in the years immediately following their retirement.

In 2010 alone, former Pittsburgh Steeler lineman Dermontti Dawson joined New York Jets backup QB Mark Brunell, who is still on the field, in bankruptcy court.
But they are hardly alone. The NFL is replete with tales of financial fumbles.

In most cases, the players made bad investment choices, spent frivolously, fell victim to predatory advisors or assigned their less-than-qualified friends or family to handle their affairs.

Some also blame their risk-taking DNA, which is an asset on the field, but a liability when it comes to managing money.

But Susan Bradley, a certified financial planner and founder of the Sudden Money Institute, who works with the NFL to develop life training skills, says it’s a fate that would befall most anyone forced to manage overnight wealth.
“Do they have a problem managing money in their professional career? Sure, you would too,” she says, noting players have a narrow window of opportunity (usually just a few years) to earn enough to last a lifetime.
They also face significant pressure to lead a luxury lifestyle and have virtually no free time to focus on finances with the rigorous demands of professional sports.
Too true. But it’s a challenge most of us would love to tackle.
The following ten NFL players—who lost it all at one point—unfortunately got sacked.

Marlin Briscoe
His trailblazing career and subsequent fall from grace is nothing short of legend in pro football history – not to mention the subject of a feature film due out early next year.
Drafted by the Denver Broncos in 1968, Marlin “The Magician” Briscoe broke the color barrier halfway through his rookie season, becoming the first African-American starting quarterback in NFL history.
He later played for the Miami Dolphins, San Diego Chargers, Detroit Lions and New England Patriots before retiring in 1976 to work as a municipal bonds broker in Los Angeles.
His personal life – and personal finances – suffered a painful slide after that. An addiction to crack cocaine left Briscoe homeless and ultimately behind bars. Following his release and recovery, however, the Oakland, Calif.. native turned his life around – starting a football camp for kids and serving as the director of the Boys and Girls Club in Long Beach, Calif. He also mentors current NFL stars.

Raghib ‘Rocket’ Ismail
You’ve got to hand it to him. The Rocket doesn’t give up. Though he earned an estimated $18 million during his 10-year NFL career, most recently with the Dallas Cowboys, he lost most of it in a series of bad investment picks that began in 1991.
They included a theme restaurant called Rock N’ Roll Café, the production of an inspirational religious movie, the music label COZ Records, a new cosmetic procedure that purportedly helped to oxygenate the skin, a phone-card dispensing company and a retail store called “It’s in the Name” where tourists could purchase framed calligraphy of names or proverb. All went belly up.
Today, Ismail is listed among the investors of Bite Tech, Inc., which designs specialty mouth guards. He never filed for bankruptcy, still appears regularly on ESPN and works as an inspirational speaker, often at churches.

Johnny Unitas
His superstar career with the Baltimore Colts during the 1950s is widely credited with turning televised football into a national pastime – to this day his record of 47 consecutive games with a touchdown pass is considered by most to be unbreakable.
Unfortunately, his prowess with the pigskin did not translate into business savvy. John “Johnny” C. Unitas, who was elected into the Hall of Fame in 1979, made a series of bad business moves both before and after he retired from the field in 1974.
Investments in a bowling alley chain during the 1960s were less than profitable, as were subsequent real estate deals in Florida, a failed prime rib restaurant partnership and a company that made circuit boards, for which creditors were attempting to collect nearly $4 million in personally guaranteed loans from Unitas and his partners. The Hall of Fame QB filed for Chapter 11 bankruptcy in 1991, without disclosing his debts, to protect his personal assets from creditors.

Michael Vick
No financial fumble list would be complete without a mention of NFL bad boy Michael Vick.
After being sentenced in 2007 to 23 months in jail for his involvement in an illegal dogfighting ring, the former Atlanta Falcons quarterback forfeited his record $130 million contract, along with an estimated $7 million a year in endorsement deals from Nike and Coca-Cola and everyone else.
He negotiated for Ch. 11 bankruptcy in 2008, listing debt of $10 million to $50 million. But there’s still time for redemption. After his release from prison, Vick joined the Philadelphia Eagles in 2009 and 2010, earning the prestigious Comeback Player of the Year award. As a free agent this year, many predict another fat NFL contract for the record-breaking quarterback. Now, if he can just get those creditors off his back.

Deuce McAllister
As the New Orleans Saints all-time leading rusher, Dulymus “Deuce” McAllister raked in an estimated $70 million during his NFL career.
Apparently, it wasn’t enough. Debt related to his failed Nissan car dealership in Jackson, Miss., including personal guarantees on loans for which he defaulted, forced the famous running back into Ch. 11 bankruptcy in 2010 – the same year he retired. Nissan has stated publicly that McAllister owed nearly $7 million, including interest, after defaulting on his debt and then exceeding his credit line.
Today, McAllister still owns a luxury car dealership in Jackson, invests in the restoration of the historic King Edward Hotel in Jackson and runs the Catch 22 Foundation, dedicated to enhancing the lives of youth in Mississippi and Louisiana.

Mark Brunell
It was the real estate recession that put the former Jacksonville Jaguars quarterback on the financial injury list. The three-time Pro Bowler, who raked in more than $50 million during his decade-long career and took home a Super Bowl ring in the 2009-2010 season with the New Orleans Saints, filed for Ch. 11 bankruptcy in June 2010.
His filing listed $5.5 million in assets and nearly $25 million in debt after several real estate projects in which he had invested in Florida and Michigan went belly up. His personal guarantees on a number of business loans put the final nail in the coffin.
Today, Brunell plays backup for New York Jets QB Mark Sanchez and continues to operate football camps via his company Mark Brunell Enterprises. Let’s hope those future football greats pay up.

Travis Henry
It was his penchant for producing offspring that cost Travel Henry his fortune – that and a little cocaine trafficking incident. Having fathered 11 children by 10 different mothers (one had twins), the former running back for the Buffalo Bills and Denver Broncos has indicated in various court filings that his child support payments of roughly $180,000 per year have left him penniless.
Henry was cut by the Broncos in 2008, receiving less than $7 million from his 5-year $25 million contract. A year later, he was sentenced to three years in prison on federal drug charges following a cocaine sting.

Dermontti Dawson
The real estate recession hit Dermontti Dawson like, well, a linebacker. The one-time highest paid offensive lineman in Pittsburgh Steelers history, earning $4.2 million per year at the peak of his 13-year career, filed for Ch. 7 bankruptcy last year citing $69 million in debt.
Dawson’s money troubles primarily stem from his personal guaranty on a number of failed real estate ventures including shopping centers and single family home developments. His home and personal belongings, including watches, cars, jewelry and personal memorabilia, were auctioned off late last year, netting a reported $775,000.

Lawrence Taylor
It was a career marked by controversy for former Giants linebacker Lawrence Taylor, starting in 1988 when the NFL suspended him for failing a second drug test. The real trouble began, however, both personal and financial, after his retirement in 1994. He was arrested in two states on drug charges in 1996 and filed for bankruptcy in 1998 to keep creditors from taking his house.
Two years later, he received five years of federal probation for falsifying tax documents and tax evasion. And in 2009 he was arrested for fleeing the scene of an accident, and the statutory rape of a 16-year old girl, for which he is currently serving six years probation as part of a plea agreement.

Arthur Marshall
When Arthur Marshall went down, he went down big. The former Broncos and Giants receiver started serving a five-year prison sentence last August after pleading guilty to two counts of bank fraud.
Charges included providing false personal information on his mortgage applications, real estate contracts and other documents he used to obtain loans for the construction of homes in Augusta, Ga. – part of an elaborate mortgage fraud scheme. The jig was up when his housing project imploded during the real estate recession.
He was also ordered by the courts to pay more than $3.6 million in restitution to his victims, which included several banks, members of the American Legion and a family paid Marshall $100,000 for a home and never received the property title. His 2008 Ch. 11 bankruptcy filing for his business, Custom Contractors, listed some $11 million in debt.

After the discharge, a debtor is entitled to have the balance of each discharged debt reported as zero on his or her credit report. The history of delinquencies cannot be reported as, but the balance must be reported as zero. If it is not so reported, you should dispute the debt. Negative history on your credit report does not doom you to perpetual credit rejection. However, it does present a challenge to strengthen your financial situation in the present by saving and using credit carefully.

If you bankruptcy or discharged debts are not property described on your credit report, the Fair Credit Reporting Act allows you to challenge the information that you believe is inaccurate. If the reporting agency cannot verify the accuracy of the information, they must remove it. If you have received a discharge in bankruptcy, it is in your interest to have the discharge noted on your report, since it is proof that he old debt is no long legally enforceable.

To be sure, stress is a constant for many of us in this fast paced, high tech day and age. Pressure and anxiety are an expected part of many professions, including the practice of law. However, there are few experiences more stressful than filing for bankruptcy. Good bankruptcy attorneys are mindful of this as they navigate their clients through the process. However, debtors must realize, and effectively cope with, the tremendous stress they find themselves under. Ironically, the stress and anxiety commonly associated with creditor harassment or an inability to pay the bills is what leads to filing for bankruptcy. Then this stress is compounded by the trustees and the 341 meetings. For most, the stress of bankruptcy is well worth it. The journey through bankruptcy court promises and eventual light at the end of the tunnel, but it’s always darkest before the dawn. How can bankruptcy debtors deal with the stress of bankruptcy so that hey can maintain their sanity as they pursue a fresh start? Below is a list of five suggestions to effectively deal with the stress of filing for bankruptcy.

1. Exercise
It may strike some of you as a bit strange that exercise would be first on the list. However, it’s really a simple equation: exercise relieves stress. Things always look brighter after a good workout. According to the Mayo Clinic, an exercise routine helps to increase the production of your brains’ feel-good neurotransmitter, called endorphins. Any exercise that gets your heart rate going will do: yoga, squash, tennis, running, basketball, etc. Regular exercise can increase self-confidence and lower the symptoms associated with mild depression and anxiety. Exercise also can improve your sleep, which is often disrupted by stress; ever stay up at night wondering how you’ll pay the bills?

2. Prayer
Regardless of religious affiliation, a back to basics spiritual approach can help one cope with stress. Take the time to focus on your breath. Ask yourself: of all my problems, what problem am I confronting NOW. Although it can be difficult, try not to immerse yourself in too many scenarios about the future. Deal only with what is on your plate, one day at a time. As Mark Twain famously said, “I am an old man and have known a great many troubles, but most of them never happened.”

3. Full Disclosure
A routine bankruptcy case is stressful enough, believe me, you don’t want to see a “problem” case. For the debtor, bankruptcy is all about their debt. However, it is important to keep in mind that the Court and trustee are more concerned with assets. This post is intended to aid in relieving stress, so I won’t go through the parade of horrible that will ensue if your schedules are filed with assets. Just follow one rule: tell your bankruptcy attorney about everything you own, you will be glad you did.

4. Don’t Go Through it Alone
One very common source of stress for bankruptcy debtors is shame. Many feel that bankruptcy represents failure. This simple isn’t true. Bankruptcy is a legal, ethical and entirely legitimate process which allows for a fresh start. Taking advantage of bankruptcy under the right circumstances if nothing to be ashamed of. To the contrary, it’s a sophisticated move, utilized often by multinational corporations and celebrities. Discussing your concerns with a close friend or family member will allow for an outlet to all they pressure that is building inside you. Let it out! Worrying about what other people think should be last on your menu of concerns during a financial crisis.

5. Develop a Plant of Attack For Life After Bankruptcy
This is a big one. Putting together a plan of attack for your life after bankruptcy will be important, not only to relive stress but to thrive in your new debt free life. Identify the circumstances that led to bankruptcy, and if possible, take steps to remedy them. Rebuilding credit will be a key. Knowing that you have mapped out the beginnings of a comeback will allow you to sleep better at night.

Lastly, try to remember that, while the bankruptcy process if not easy or fun, it has helped millions of people in the county get out from under impossible debt. Talk to a good bankruptcy attorney, disclose all of you assets, breath, exercise, plan and you’ll get by… with a little help from your friends. Good Luck!

For instance if you have defaulted on your car and jet ski payments and your creditors are ready to repossess both vehicles. You proceed to file for bankruptcy, but you wish to keep the car because it is your only reliable source of transportation. At this point you decide to sign a reaffirmation agreement with your car creditor, which will allow you to keep the car as long as you promise to pay for the remaining debt by the new terms of the agreement.

On the other hand, since you have surrendered your jet ski, it will be returned to the creditor and sold at auction. The money made on the jet ski goes to the creditor, and whatever you still owe on the jet ski will be discharged through bankruptcy relief.

There are a few rules to follow though. Make sure that the organization your are donating to is a 501 ( c) (3) that is lawyer lingo for a charity that the IRS recognizes. Most churches as well as a number of other types of charitable organizations have 501 ( c) (3) status and if so inclined, you can keep contributing.

You do not need to be able to prove that you gave what you said you gave. Ask the organization for a letter that you can copy for both your tax returns and your bankruptcy lawyer and your trustee. In our office, we look at your tax returns for the last two years to make sure that what you say pretty much matches what you told the IRS. The Trustee will look as well. The reason is so that people can’t be sneaky and just say that they give money to a charity in order to quality for a Chapter 7 bankruptcy. Or to make their disposable income look smaller if they are going the Chapter 13 route. For these reasons, it really helps your cause- and their cause you care enough to donate to, for that matter- if your pattern has been to make fairly regular donations. If you literally just decided to start donating, this looks like a bad idea to the Trustee. They wonder if you might be trying to work the bankruptcy system to your advantage.

Long story short, if you have a history of making charitable contributions to your church or even to another charity, you get to keep doing this. Just to make sure you have records to prove it and you are not likely to raise any red flags.

My Landlord?
Yes, if you have a landlord than you have a lease, even if it’s a month-to-month unwritten lease. That means that your attorney must list your landlord on the bankruptcy schedules and notify your landlord of your intention to keep paying the rent or not.

My Ex-Spouse?
If you pay them child support or alimony than yes. If you owe them money than yes, otherwise, probably not.

My Neighbors?
If you owe them any money than yes, otherwise probably not.

My Parents?
Only if you co-signed on a debt with them or you owe them money.

My Creditors?
All the people you owe money to must be notified of your bankruptcy filing. That includes service providers, like doctors, credit card companies and all other unsecured and secured creditors.

Anybody else?
When you file documents in bankruptcy court they become part of the public record which means that anybody who wants to invest some time and a little money can find them if they know where to look. Bankruptcy public records are available on the internet for a fee on a website known as “pacer”. You must create an account with username and password and there is a nominal fee to view each page of the record. If you have a good reason, your attorney can request certain portions of your bankruptcy filing be sealed and not part of the public record. The court usually grants request such as this regarding trade secrets and research and development issue.

Cards With Balances Must Be Listed

If your credit cards carry a balance, your must list them and the credit card company will receive notice of your bankruptcy. They may cancel your account. After all, your balances will be entirely wiped out. As you can imagine, they don’t like this very much. If you really love your credit card and want to keep it, reaffirming the debt is an option. Reaffirmation is a promise to pay a debt after bankruptcy. However, because bankruptcy is such an effective tool at wiping out credit card debt, reaffirming doesn’t make much sense.

Zero Balance? No Need to List

Credit cards with a zero balances do not constitute a liability and do not need to be listed in your bankruptcy filing. Keep in mind that the company might find out about your bankruptcy and cancel your account anyway. If the account is not cancelled, you can maintain it after bankruptcy.

Concerned?
Don’t be. Many people receive offers from credit card companies very soon after filing for bankruptcy. Worrying about keeping a credit card is probably a waste of your time.