Buying another car?

[coolmom04]

I keep going back and forth.. wondering what's best for us.. 7 or 13. In the event that we decide to take the 13 route (our schedule J net monthly income is about $100 and we are over the median, so not sure what the UST will decide), we own one car outright that is seriously not going to make it another five years. We have my van that is almost four years old.

If DH is filing alone, can we still "claim" the car payment of two vehicles? My first vehicle loan is $427. We are probably within $1,000 of what it is worth.

Also, if we go ahead and trade in/buy new vehicles, do we have to wait another 90 days to file??

When you file, does the monthly payment you make cover all your unsecured AND your secured? I've been mainly researching ch7, so I need to start digging more on ch13. That doesn't really make sense, but paying for another car on TOP of whatever the UST decides we would need to pay monthly towards debt doesn't seem like a good plan for us... but at the same time, neither does being stranded two years down the road unable to get a newer vehicle for my husband.

Sorry for all the ?s. I will read more tonight..

[lrprn]

I keep going back and forth.. wondering what's best for us.. 7 or 13.

Frankly, if you qualify for Ch 7, you should go that route. The recovery is much faster and you can get back on your feet financially that much faster as well.

If DH is filing alone, can we still "claim" the car payment of two vehicles? My first vehicle loan is $427. We are probably within $1,000 of what it is worth.

No. If he files alone, he can claim one car, not two. You both have to file to claim both cars as expenses.

Also, if we go ahead and trade in/buy new vehicles, do we have to wait another 90 days to file??

If you are going to file Ch 13, then no. You'll have a secured loan which the lender will file a claim to be paid during your 13 and afterwards.

When you file, does the monthly payment you make cover all your unsecured AND your secured?

No. Your trustee may or may not make your house and car payments - it just depends on what is in your best interests and what your local court customs are. Also the only money that goes to unsecureds goes to those who filed claims. They are paid back whatever % is determined when your plan is confirmed. That could be anywhere between 0% to 100% - again, the payback % all depends in how you come out on your Means Test and Schedules.

I've been mainly researching ch7, so I need to start digging more on ch13.

Dig here then - here's some good websites that explain Ch 7 vs Ch 13...keep in mind that some of the information may be state- or district-specific....

http://www.mroselaw.com/CM/Custom/Chapter-7-13-Comparison.asp

http://www.abanet.org/publiced/practical/books/family_legal_guide/bankruptcy_7_13.pdf

http://www.michiganbankruptcyattorneys.com/chap_7_vs_13.html