Purchase used car before filing chapter 13?

[carolen]

We are still paying bills, all large balance credit cards. Next year we are facing several changes to our situation and when I met with the attorney he told me to stop paying the bills, and come back in 6 months or so to file Chapter 13. My question is we still have a resonable credit score, and can get a good interest rate on a used car, since we won't be able to buy a car for quite awhile when we are on the plan does it make sense to buy it now. The payment would be 300 a month, and I would be planning on keeping the car through the plan. thanks

[Floridagail]

We bought a new car right away in planning 13, ( he also bought a truck for work) so we would have dependable transportation for 5 yrs , It may also help bring down his disposable income. Meaning less goes to unsecured creditors. My Bf will have to file 13 or 7 sooner or later this next year. We were told the same thing for him to stop paying bills and file 13 , or wait and file 7 later if he loses his job. He was able to get a good interest rate, even with overloaded cc debt. because he had previous history of paid off cars with GMAC and FMC.

[carolen]

Thank you so much for quick response. I had also thought of the disposable income angle and that made sense. I wanted to get 6 months between buying the car and filing so I think we will be doing that in next week or so.

[FishersMike]

If you are going to pay for the car in the 13 you do not have to wait so much time before filing -- you can get the vehicle a week before filing...... just in case you did not know that. It is not committing B/K fraud since you are going to pay for it.

[95kindebt]

We filed in December 09 and bought a car in august 09 knowing we were filing. OUr attorney mentoned to us that since dh was driving 2 beaters, and I had the Tahoe, that we would need a car to get us through 5 years. Our credit rating sucked by that point, and we ended up with a 26% loan, however, since it was so many days before we filed, we were able to include it int he plan, and pay it back in the plan, as well as go from 26% to 3% finance.
OUr attorney mentioned where it becomes problematic, is if we would go out and buy an EXPENSIVE car. We just needed a commuter, something similar to a Honda accord. So we went with a 2008 hyundai sonota, and haven't looked back. LOVE that car and the trustee didn't blink an eye.
Good luck!

[enginegirl]

buy a brand new car with an extended warranty..... nothing flashy.. but be sure to have a 60 month warranty (and if you can get it maintenance too!!)!