Car Purchase before filing

[littlemuffin]

Hi,

I'm new to this process but I have done a lot of research and have spoken with a friend who is a bk attorney.

I've noticed several of you saying that you purchased a new car before filing.

Is there a time period you have to wait after the purchase to file?

My car is 8 years old and I need something dependable before I file a Chpter 13. Since it is new purchase it shouldn't exceed my state's exemption.

Thanks
LM

[SMinGA]

My atty recommends 3 payments before filing - if you start out with a high interest rate that will come down to till rate in the plan. But he also says if there is need to file sooner, it will most likely not be an issue. Worst case scenario is the car is paid outside of the plan at the contract apr.

Check with attorneys in your area, they are likely to know the trustees and know what 'issues' are likely to cause problems.

[boochase]

[QUOTE=littlemuffin;434460]Hi,

I'm new to this process but I have done a lot of research and have spoken with a friend who is a bk attorney.

I've noticed several of you saying that you purchased a new car before filing.

Is there a time period you have to wait after the purchase to file?

My car is 8 years old and I need something dependable before I file a Chpter 13. Since it is new purchase it shouldn't exceed my state's exemption.


At my initial consultation, I was told to stop paying my CC's immediately as long as I intended to file. Whom I choose to represent me didn't matter. I was also told to go out the next day and purchase/lease a car. And, if I intended to get a cellphone/smartphone, do it. So I did. The rationale was that in a couple months your credit score will sink. This is legal, for you haven't retained an atty nor filed your case. Smartest piece of advice I have gotten.

[LadyInTheRed]

I made one payment on my new car before filing. I wasn't quite 30 days late on my CC payments, so my credit rating was good enough to get 1.9% financing. My plan was confirmed with no questions asked. I should have taken the cash back instead of the 1.9% financing. The lender is getting 6% in my plan and I had enough wildcard exemption left to cover any increased equity.