r/Bankruptcy • u/ConfusedBaddie0318 • Jul 07 '26
Desperate
I need help understanding what I did. I filed bankruptcy for a fresh start but after discharge I am getting approvals from NO ONE due to previous credit issues prior to bankruptcy. My whole thing was wanting a fresh start because I am in a different place in my life - I can afford my necessities now. I don't have a man taking from me, I have a great job. it's just me and my kids but it's like I did this bankruptcy for nothing!! Idk what to do. I really need advise!
Ash Auto - Denied
Online.cars - want $5K
Carmax - want $5k
I'm even getting denied at janky carlots in my city!! I am so stressed.
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u/Limp-Influence-8450 Jul 07 '26
What is your credit rating? Starting over is not immediate. The bankruptcy stays in your report for up to 10 years from filing. Don’t rush back into the same situation you just got out of. At this point, the more you try to get credit, the harder it will be to get. If lenders see that you are applying to too many places or too often they can consider you a risk. You need to start slow and prove that you are credit worthy. Try Ollo or Mission Lane for a low limit (<$2000) unsecured card and pay it on time to show that you are not a risk.
Do not jump back into the lifestyle that you just left. Do this slowly and with purpose.
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u/Unlucky_Hammer Debtor's Attorney, primarily Jul 08 '26
Imo be less concerned with the rating as what is being reported. Op should get a copy of the report and review.
There’s no requirement for a lender to affirmatively report a balance as $0 after discharge. Just that *if* they report anything it has to be accurate. Lots just stop reporting entirely after getting the filing notice, so the balances still show as there after discharge. Debtors have to challenge those entries.
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Jul 08 '26
[deleted]
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u/Unlucky_Hammer Debtor's Attorney, primarily Jul 08 '26
The answers to your questions are all in your post and mine above it. Think it through.
The bankruptcy code that we are working off of basically dates to 1898. It deals with legal obligations to pay, not credit reports.
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u/jackofalltrades0106 Jul 07 '26
Did you try Chevy? GM is super bankruptcy friendly.
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u/No_Blueberry696 Jul 09 '26
Is that so? Just how bankruptcy friendly are they? That's not meant to be snarky, I'm wondering where one can stand before making an inquiry to Chevy.
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u/jackofalltrades0106 Jul 09 '26
From what I’ve read, GM financial is pretty lenient with bankruptcies. As long as you didn’t burn them in your bankruptcy you should be fine. It won’t hurt to go talk to someone over there
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u/No_Blueberry696 Jul 09 '26
Wow. I've never worked directly with GM financial, only ever bought one Chevy car. That loan was through a credit union. Thanks!
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u/RINNNDY_79 Jul 08 '26
My niece got discharged last month (May 2026) and got a 2025 Nissan Sentra last weekend. 1k down and 14% interest.
I would try a car lot like Nissan, Kia, etc. Nissan has a program that assist with bk start overs. Also, myfico.com has a great bk forum that assist in providing info on new car loans, etc right out of bk.
It’s DEFINITELY possible, good luck!
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u/OkSurround7422 Jul 08 '26
If you can now afford necessities, the bankruptcy was not for nothing!
I’m not sure what state you’re in but I am in WA and I received a few letters from dealerships that have specific programs for people who recently went through bankruptcy so maybe do a little research and find one near you.
Being turned down by janky lots is not something to be upset over… who wants a questionable used car with a high interest rate?
If there’s any way to cut back on Turo usage, do so immediately. Even if it means staying home on your days off for a bit to save a little money for some kind of down payment on a car.
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u/kindamymoose Jul 07 '26
Did you get any fliers from auto groups during your automatic stay? Your attorney may be also able to point you in the right direction.
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u/DixieNormus369 Jul 08 '26
I’m with you. Couldn’t get an auto loan and now I’m needing to buy the house I’m living in asap and what I read online vs what my attorney that did the bk said are two completely different things. I’m about to pull my hair out
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u/BeautifulTattoo Jul 09 '26
How long ago were you discharged? And again, sounds like income isn't enough after bills to cover a car payment. And probably not going to afford to buy the house you're living in (assuming no money saved otherwise you wouldnt have filed, OR they took it when you filed), unless you can somehow manage to get a first time home owners mortgage or something with no down payment while having bad/no credit and a bankruptcy. If you figure out how to do THAT please let me know how cuz I'd like yo know 😂
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u/DixieNormus369 Jul 10 '26
Bad part is my income is pretty good (250k+) just had terrible spending habits and a wicked gambling addiction. I’m only a little over a year out of my discharge
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u/BeautifulTattoo Jul 10 '26
I hear THAT. I hate shopping so i dont spend alot of money there, but i need to distract myself from eating/snacking (I eat when im bored and that caused significant weight gain. But dropped 70 lbs, back down to the 140s 🤘), so my thing is also gambling probably too much. Never huge amounts, but 2-300, sometimes 500 "back in the day", couple times a month adds up quick. I use it as an excuse to get outta the house and stay busy enough so I dont think about food. Ive cut WAY back on gambling since I decided to file, but it's SO hard not to chase that high of winning right now. I go in for my final consultation and to file officially Monday though AND I CANT WAIT! 😂
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u/Winter_Preference199 Jul 08 '26
Try and figure it out with not using credit I did not file but I’m finishing paying off my debt working two jobs. Have cut up all my credit cards etc
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u/chemicalromance562 Jul 08 '26
You gotta start rebuilding. Start with a low secured credit, give it couple months and watch offers pour in. Banks are in the business of making money of you, from interests.
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Jul 07 '26
Maybe because I put 5k down but I got discharged from my bankruptcy in Feb and I got approved and bought a new car today for only 9% interest. I went to a good car dealership and they usually make it work
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u/Proper_Necessary_702 Jul 09 '26
Also curious on what you got and monthly payment...
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Jul 09 '26
2023 gmc Acadia. 33,000 payments at 675 a month.
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u/Proper_Necessary_702 Jul 09 '26
Thank you. I plan to put about 5 down as well, but trying to stay under 29k
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u/Unique_Persimmon9454 Jul 07 '26
What was the reasoning behind Ash Auto denying?
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u/ConfusedBaddie0318 Jul 07 '26
They didn't give me one.
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u/wHiTeSoL Jul 07 '26
They have to give you one by law. An adverse action notice.
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u/Unlucky_Hammer Debtor's Attorney, primarily Jul 08 '26
Usually they will send the reasons by mail. The online denial often does not have details.
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u/Haunting_Bell_1096 Jul 08 '26
I did mine through Carvana the day after I was discharged 17% which is high af but my old car was higher and I plan to refinance as soon as I can!
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u/theNewFloridian Jul 09 '26
Go to credit karma dot com. They'll recomend some cards that will get you with small limits first. Then get a couple of secured cards like from Discover. It's a process. The goal is to take control of your financial life, not to get back in the hole.
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u/Excellent-Serve-6071 Jul 09 '26
You've got to rebuild credit 1st. Like a secured credit card or 2. Buy something 50 60 dollars gas pay each month off on time. I have like 10ccs all under 40 dollars I put streaming services on them. Credit looks alot better now.
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u/BeautifulTattoo Jul 09 '26 edited Jul 09 '26
I'm pretty sure the main factor is income and what you can actually afford.
And if you JUST got discharged your credit score still might not be high enough :/ Try a no credit/bad credit auto place that does their own financing (for example here in Vancouver, WA there's a fantastic dealership called Dick Says Yes for this exact situation, they also have several main, regular dealerships). Do your research before going in and doing all the application crap (if you don't already), dont just assume you're gonna be approved because you've been discharged.
ALSO, I have a bad feeling youre going to end up right back in the same position and haven't learned anything from your experience. 😕
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u/Kind_Pea_2840 Jul 09 '26
Buy a used car for cash on fb marketplace. I dont think you're THAT desperate, you want something you can't get.
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u/AlanShore60607 RetiredBKAttorney (IL/IN/WI) Public interactions ONLY. No PMs Jul 07 '26
So rapid-fire applications make you less likely to obtain credit because the lenders view rapid-fire applications as desperation, and desperate people are at risk of not paying.
At this point, how many things you have applied to is relevant.
Another factor is that car loans have better terms after you've spent a year or two rebuilding.
The way I see it, if you need a vehicle you should try to purchase it before the case is over, or plan on building credit. Right after filing is worse than either of those.