Filing chapter 128!

I am not sure. I don`t think it will hurt you getting a car loan. Your best bet is to ask the attorney whom you are going through to do the CH 128.

A 128 does not get reported as a bankruptcy, so that is a bonus for your credit. Creditors that were included in a 128 are supposed to report an "unrated" status with a comment descriptor of "payroll deduction." (This information comes from letters I have received from 128 trustees when my customers file a 128).

When applying for a new loan, if the lender sees all these accounts with "payroll deduction", they may be inclined to look further and find out that you are in a 128. (128's are public records, so anyone can find out by searching the WI Court Access website). As that is an indicator that you are in financial distress, that may keep them from approving a loan.

Also you should see what the rules are regarding taking on new credit while you are in a 128. At least for Chap 13 bankruptcies, you have to get the courts permission to take out new loans.