Pre BK File

[jakeinTX]

Hi,

My attorney is going to file my Ch 7 in September. I am not sure what do do, I am thinking about letting my truck go back. Right now my credit is still ok (683) and no lates just hi-balances. Should I purchase new cheaper vehicle before BK or after. I am keeping my wifes car, but mine is just to expensive. The attorney is going to see if the bank will drop the loan amount to keep from having to take truck back. I have a 2005 Dodge Ram Quad Cab 4x4 with a Hemi. I owe like $16k, Kelly Blue Book lists it at $16k retail, but I took it to Carmax and they offered me $9k (no one is buying trucks like this with the gas prices). The attorney said the bank may just lower the amount owed and the payment vs a repo where they will lose a fair amount of money. What is everyones thoughts?

Thanks
Jake

[BKParalegal]

First off, the word is "lose" not "loose", now that we got that out of the way. Although I understand what your attorney is talking about, what he is suggesting would occur after you file BK, and if it doesn't work, then you are stuck trying to buy a car with a fresh BK on your credit. I would contact them now, before you file, see if they will do something before you file( most likely not, but you will then have peace of mind that you tried) then if when that doesn't work, go get a reasonable vehicle now and let this go in BK.

Good Luck

[jakeinTX]

Thanks

Thanks for the info, as far as spelling goes thats what I get trying to spell a word for my daughter who is 7. I gave her the correct answer as I made a typo!
Jake

[beachymama]

Why not attempt to purchase a vehicle now while your credit is good and you can possibly get a good interest rate... Then, turn in your truck and include it in the bankruptcy.

There are some very good deals right now because dealers want to get 2008 cars off the lot. I just did this same thing, but my lease was ending that is why I needed to get a vehicle before the bankruptcy. I bought a $30000K van for $17000... Old payments were $535, my new payments are $365.

[fltoo]

First off, the word is "lose" not "loose", now that we got that out of the way. Although I understand what your attorney is talking about, what he is suggesting would occur after you file BK, and if it doesn't work, then you are stuck trying to buy a car with a fresh BK on your credit. I would contact them now, before you file, see if they will do something before you file( most likely not, but you will then have peace of mind that you tried) then if when that doesn't work, go get a reasonable vehicle now and let this go in BK.

Good Luck

OMG You know how many times people use loose for lose all over the internet???? Every time I see it, I want to correct, but don't have the nerve.

You handled it cutely.

[mom2three]

Why not attempt to purchase a vehicle now while your credit is good and you can possibly get a good interest rate... Then, turn in your truck and include it in the bankruptcy.

There are some very good deals right now because dealers want to get 2008 cars off the lot. I just did this same thing, but my lease was ending that is why I needed to get a vehicle before the bankruptcy. I bought a $30000K van for $17000... Old payments were $535, my new payments are $365.

I purchased a car, 2008 leftover, great deal, payment in the same ball park as your payment. Sounds like getting a car was a good idea before filing, but how long of a wait is needed between the purchase and retaining a lawyer if you want to keep paying on the car.

[happy_ira]

Here's my added two cents: If you can get the car now, get it before you file BK.

I was in a kind-of-similar situation with a car lease that was ending with a few days of my impending Ch 7 filing. I knew that if I waited until after the filing, my credit would honestly suck and then what auto company would lend me $$ to get a vehicle?

So, rather than be without a car (and my family of 7 would have to walk everywhere), I converted the end-of-lease to a purchase (the other choice was to simply return the vehicle, but that goes back to walking everywhere which is not realistic) before filing.