Buying a car while in chap 13

[joekel]

Hi everyone it has been a while since I posted here. Our BK was approved in Sept 09 making payments since Aug. we are in a 100% pay back. It is tough but not as bad as we thought, it beats getting harassing calls and at least we will be debt free in 5yrs(even though are credit is shot). We are paying back $90,000 all cc debt. Our question is it possible to get a car loan while under Chap13 our only vehicle has 130,000 miles and is starting to bleed us every month.I have a company car.Can we do this, I know we should consult our atty.Thanks for any advice joekel

[lrprn]

Ok, I'm confused. Is the company car the car with 130,000 miles or is that a second family car? Did your attorney ever explain that it would be best to try and replace the car with 130K mileage before your 13 was filed because old cars will bleed you dry when you can least handle the costs (as you have discovered)?

No matter what, yes, it is possible to get a reasonable, no-frills new (to you) car during an active 13. It's just quite difficult to do so. First you need to get your trustee's permission to replace the current car. Once you have that, it's the lending that's the biggest challenge.

Talk to your laywer - he/she is likely to know which car dealers and lenders in town will be most approachable. No matter what, be prepared for a very high interest rate - like teens to lower 20s - if you can get financing.

Having said that though, nothing ventured, nothing gained. Work with your lawyer to get the ball rolling and see what happens.

[joekel]

New car

I'm sorry the car with 1300,000 is the main family car and we have discovered that it is costing us every month for something, it is a real pain in the neck with 3 kids and an unreliable car. The company car gets replaced every 2 yrs but it is just for my use no other drivers allowed.Thanks for responding I will contact our Atty Mon. He did give us a list of the Atty in his office and the trustee's office who handle car loan request Thanks again joekel

[MSbklawyer]

Yeah, you can buy another car in bankruptcy. But you'll need court permission to incur new debt. I would suggest instead that you save up and buy something cheap for cash if you MUST buy something. As much of a hassle as it is to keep you present car running, you are probably spending less to do that than you would on a monthly payment even for a used car.

[joekel]

new car

Thanks thats seems to right way to go for now