I want to sell my car

[simon2020]

What are the BK rules regarding selling my car for cash?

I anticipate filing on 3/1/09. (Spoke to my attorney today and that is our goal.)

1. I may use the cash to buy another - better car prior to filing.

2. I may keep the cash just for living expenses.

3. And NO, I will not pay off any creditors with this money.

By they way, I was told by my attorney that since my car is 8 years old - he suggested I go and get another reasonbly priced car even with bad credit and just get a car loan. Then when he files, he will ask the Trustee to lower the car note interest rate.

Has anyone bought a new/used car prior to filing chapter 13? If yes, is it true the interest rate was lowered - so in fact the payments were lower too?

Thanks.

[justbroke]

What are the BK rules regarding selling my car for cash?

Not really BK rules because you're not in BK... just insolvent.

1. I may use the cash to buy another - better car prior to filing.

Should be no problem... just make sure that any equity in the car is covered by an EXEMPTION!!!

2. I may keep the cash just for living expenses.

Yes. But, you should actually SPEND it. Stock up on food, buy clothes, etc.

3. And NO, I will not pay off any creditors with this money.

You can also use it to pay for your lawyer.

Has anyone bought a new/used car prior to filing chapter 13? If yes, is it true the interest rate was lowered - so in fact the payments were lower too?

Yes, you can lower the interest rate in a Chapter 13, even if it's a so-called 910-vehicle. I wasn't too crafty with mine, but moved my 1 year old car from a 12.49% to 10% in my Plan without question. I think you can go down to the Till rate plus 3% (which is 8% basically) without any problems.