Welcome to BK Car Education USA. BK Car Education USA is a unique program designed to help people in Chapter 7 Bankruptcy (and Chapter 13, with Trustee approval) get into a new auto loan and a new vehicle, the same day of filing for bankruptcy. Whether you are an attorney seeking to help your clients or you are a client in the process of filing for bankruptcy, we have complied a list of the most asked questioned by our network of Attorneys. This Q&A can help both the attorney and the client better understand the BK Car Education USA program
The BK Car Education’s Network of Attorney’s Q& A
Q: Why should my clients purchase a vehicle the day they file their bankruptcy?
A: Many lenders use new technology that can automatically turn down loans through an automated system. BK Car Education USA is able bypass that system and get clients approved. When a bankruptcy is filed, the credit bureau basically “freezes” at their current low credit score. We use that “freeze time” to get an approval for a new auto loan they day of filing. When your client’s new installment loan is reported to the credit bureau post filing, it increases their credit score more rapidly than if they wait.
Q: Can my clients get approved prior to filing their bankruptcy?
A: Yes, your client can get approved prior to filing. We have an exclusive program where clients can get approved based on their pre-filing documents and bankruptcy court schedules.
Q: Do my clients need to wait until their 341 meeting?
A: There is no need to wait. Once the bankruptcy is filed it becomes a post-petition debt. Therefore, our lenders are willing to loan money to someone in an open chapter 7 bankruptcy.
Q: Is waiting for discharge better for my clients?
A: Not only does waiting hurt their chances of getting an auto loan, but it could also delay the process of rebuilding credit for years.
Q: Will interest rates be lower if my client waits until discharge?
A: In most cases, no. The lenders that loan money to freshly discharged consumer have much higher fees and interest rates than those that lend money right when they file.
Q: Is 722 redemption or reaffirmation of my client’s vehicle a comparable option?
A: In most cases, the credit bureau reports the vehicle as included in the bankruptcy. This report will not help clients improve their credit. In addition, consumers that have auto loans prior to filing are harboring a large amount of negative equity. A vehicle’s estimated book value is usually not worth the true value. By choosing 722 Redemption or reaffirmation, this negative equity will carry over post-bankruptcy. The better option is to surrender the old vehicle, and start fresh in a new vehicle, with a new auto loan.
Q: What are fees and costs of your program?
A: There are absolutely no fees or costs. Our program is completely fee free and cost free for both the attorney and the client.
Take the next steps in securing your client's financial future, or your own, by applying today!