401k loans payments/buying a car before filing?

[worriedmom]

Wow, just spent hours reading this stuff. A lot of good info on here.

Ok, we will need to file 13 to get HELOC stripped although by means test we qualify for 7.

My questions are: We NEED a new(used) car, I see we should get it before we file. How long should we wait after to file? We are also waiting for our tax return before we file...how long do we have to wait after that too?

Have 3 401k loans taken from paycheck... adding up to approx $930 taken out monthly. I see a LOT of mixed stuff on this. Will they make us pay that much to our unsecured creditors?

We are a family of 6, 1st mortgage approx $365k, 2nd $35k house valued about $325k ( we paid $425k for it 2 yrs ago, put $100k down but took out loans through HELOC and 401k to start a business that failed). During this time racked up approx $25K in credit card debt. So now have and income of about $4900 gross monthly, but only net $3200 a month before bills.

We are (and have been for about 8 months) in the process of trying to get a home loan modification prior to filing bankruptcy. Current trial payment is set at $1300.

[worriedmom]

We are in Tucson, any recommendations for attorneys?

[LimpDisc]

Bought our used 2008 Ford Escape in August and filed CH7 in December. We woud have filed earlier if we weren't waiting for our income to drop.

[aa06a47]

Wow, just spent hours reading this stuff. A lot of good info on here.

Ok, we will need to file 13 to get HELOC stripped although by means test we qualify for 7.

My questions are: We NEED a new(used) car, I see we should get it before we file. How long should we wait after to file? We are also waiting for our tax return before we file...how long do we have to wait after that too?

Have 3 401k loans taken from paycheck... adding up to approx $930 taken out monthly. I see a LOT of mixed stuff on this. Will they make us pay that much to our unsecured creditors?

We are a family of 6, 1st mortgage approx $365k, 2nd $35k house valued about $325k ( we paid $425k for it 2 yrs ago, put $100k down but took out loans through HELOC and 401k to start a business that failed). During this time racked up approx $25K in credit card debt. So now have and income of about $4900 gross monthly, but only net $3200 a month before bills.

We are (and have been for about 8 months) in the process of trying to get a home loan modification prior to filing bankruptcy. Current trial payment is set at $1300.

By all means, get your transportation needs taken care of prior to filing. Your in a better position to get a better interest rate now and it might cost you tons more in interest, ect. plus approval by a trustee to incure new debt. Major hassel after filing. Get your transportation needs done now. I would even recommend a new car to ensure repair expenses are low while your in the plan.

You may get throwed into a chapter 13. But your payment will be based on disposible income, not what your paying back in 401k loans. The pay back of 401k loans cannot make you qualify for a chapter 7, however, it is an allowed expense in a chapter 13. So, your disposible income may be really low / payments low.

[worriedmom]

Thank you aa06a47! Congrats on your recent success! Can't wait for mine! Hard to believe just 2 years ago I owned 2 houses with much equity, had a credit score of 800, and ZERO bills...very sad, but looking to the future!