The North Carolina Bankruptcy Information Blog

Let’s talk about cars.

We need them (more than we like to believe) and we certainly love them. But can we afford them? Boy, that’s a tough question.

In the age of excess, which most people like to call “2007,” we couldn’t find cars big enough or fast enough. If we could make a monthly payment over seven years, then it was affordable. Well, things are different now. People are looking for reliability, comfort and practicality. Just look around at the rise of small, hip cars full of features once considered the bastion of pricey imports.

Sport utility vehicles are morphing in front of our very eyes into more nimble, passenger-oriented “crossover” alternatives to mini-vans, which also found their way into the upper echelon of car prices, by the way.…

It seems that in today’s difficult economic weather, just about everyone is a risk for a lender.

Earlier this month, FICO, Inc. (the company that develops credit risk metrics) reported that America’s collective credit score is at an all-time low. Close to 43.4 million consumers have a credit score at or below 599, which is the risk benchmark for the majority of lenders. This means that more than 25 percent of us are likely to not get a car loan, new credit card (really?) or a mortgage.

FICO arrived at their conclusion through an analysis of April’s consumer credit reports. Historically, only 15 percent of all “credit-active” consumers fell below the 599 mark.…

If you have made your way through bankruptcy and the old clunker is starting to make noises that you more associate with an exhausted yak than an internal combustion engine, maybe it’s time for you to consider buying a new car. Or, should you lease? It’s a tough call.

Before you think about either option though, remember to consider the ancillary costs of car ownership, like insurance. If you have a few vehicle types in mind, contact your insurance agent to determine what it will take to cover them. You may be surprised at the little things that can add up to a steep insurance policy.…

Once your bankruptcy is behind you, your credit will begin to improve faster than you may expect―as soon as a year after filing, you may be eligible to receive a loan to finance the purchase of a new car.  Armed with a few tips, you can locate a good loan.

First things first: for the period immediately after your bankruptcy, as you prepare to move on with your life and before you undertake steps like financing a car, make sure you are laying a good foundation. Everything you do as you repair your finances will go to building a good case for why you will make a good credit risk.…

As a result of General Motors and Chrysler filing bankruptcy, thousands of dealerships across the country will be shutting the garage doors and deflating their obnoxious balloon animals and banners. But first, many of them will be liquidating cars at prices that, even for a car dealer, can be considered “Out of this World!”

So if you are on your way out of bankruptcy and the time has come to for a new ride, will you be able to get a car from a dealer? Of course. Let’s discuss it.

Keep in mind that dealers are now in the business of financing cars, not selling them.…

Inside a typical house in a pretty ordinary neighborhood, a husband and wife sit at their kitchen table well after dinner, staring stoically at one another. Scattered in front of them is an array of half-torn envelopes and perforated slips of paper with bold red type. Words like “urgent” and “past due” and “collections” stand out like blood on snow. While outside, a person casually strolls into their driveway and stops at the family minivan. A key is inserted into the lock. Moments later, the couple notices headlights wave across the kitchen and the confused silence is broken by the sound of them hurrying through the house to see what’s happening outside.…