We fianlly made a decision today to buy my wifes car out of her lease ( up the end of the month) for $17,980 - after tax its about $19,000 - The financing is the beat down - we are at 60 months and 17.9%!! for a total of $483.00 per month.
My attorney told me he couldnt encourage me to incur debt prior to filing buit that we would be ok if we did.
Our logic was this - my wives car is an 07 has 46000 miles on it its a honda and will last a very long time - hopefully another 8 -10 years.
We could have purchased a used car under the allowance ($4000) and been fine with that - our struggle was what to do when things started breaking - we have a large young family and are out doing things all the time. I was worried that buying a used vehicle for our family size would have cost us about $4-5000 and had about 100000 miles on it - what if it wouldnt last through our chap 13. and we had to repair and replace things often - weve been thorugh that and its awful. What if it did last and we had to go right back into car debt after the bk at a high interest rate and fewer choices.
I am curious how the bk will affect the loan - I am assuming we will go down to till rate about 5.5% instead of the 17.9% after we file in a month - does anyone know how this happens?
Hopefully its the right decision - we struggled with this for the last month - we almost feel that no matter what we did we would be not making the right choice.
We have made the decision that this will be the last car that we ever borrow on - from now on it will be cash up front.
We have been paying cash for everything since November and will be filing the end of this month - cant wait to get this behind us and get rid of this guilt and embarrassment.
any thoughts on how the loan process works when we start our bk - as far as the interest rate changing? I am assuming that we will pay the interest due on the principal alone about $19000 not the entire $29000 we will be paying if we paid all the way through.
My attorney told me he couldnt encourage me to incur debt prior to filing buit that we would be ok if we did.
Our logic was this - my wives car is an 07 has 46000 miles on it its a honda and will last a very long time - hopefully another 8 -10 years.
We could have purchased a used car under the allowance ($4000) and been fine with that - our struggle was what to do when things started breaking - we have a large young family and are out doing things all the time. I was worried that buying a used vehicle for our family size would have cost us about $4-5000 and had about 100000 miles on it - what if it wouldnt last through our chap 13. and we had to repair and replace things often - weve been thorugh that and its awful. What if it did last and we had to go right back into car debt after the bk at a high interest rate and fewer choices.
I am curious how the bk will affect the loan - I am assuming we will go down to till rate about 5.5% instead of the 17.9% after we file in a month - does anyone know how this happens?
Hopefully its the right decision - we struggled with this for the last month - we almost feel that no matter what we did we would be not making the right choice.
We have made the decision that this will be the last car that we ever borrow on - from now on it will be cash up front.
We have been paying cash for everything since November and will be filing the end of this month - cant wait to get this behind us and get rid of this guilt and embarrassment.
any thoughts on how the loan process works when we start our bk - as far as the interest rate changing? I am assuming that we will pay the interest due on the principal alone about $19000 not the entire $29000 we will be paying if we paid all the way through.
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