Buying a car before filing?

[Lisa68]

We are preparing to file Ch 13. We only have 1 car -- a 2000 Toyota Camry with about 146,000 miles. We bought it used in 2003, so we've had it for 8 years. It's been great, a very reliable car, but it is getting old and worn out and needing more and more work.

I know I've seen threads here about people who were advised by their atty to buy a car *before* filing (especially if their car was old). I plan on asking our lawyer about this asap, but I was wondering what others experiences have been.

Obviously, our credit is completely trashed right now. Will that make it impossible to buy another car? We have already found a couple we like (same make/model, certified used from the same dealer we bought from previously) for about $15K.

Thanks,
Lisa

[enginegirl]

I had no problem at all financing a vehicle through Mazda Finance, although I am pay 7% interest (not bad considering my credit was in the toilet). I purchased New with a 5 year extended warranty because my plan is 5 years and I really do not want any surprises.. my budget is very very tight a breakdown would break the bank! .. you may want to think about this!

Good luck to you!

[minan]

We bought a car before we filed, however we were already shopping for a car since the lease on our 1 car was coming to an end. We got a good deal on the car because our credit was still good. We did not file 13 due to delinquent consumer debt or mortgage issues. We filed due to back taxes. Like enginegirl, we also bought an extended warranty, however again this was because we didn't want surprises. Then we made the decision to file for a 13.

We also learned on this site that many people do buy a new car as part of the "pre-planning" for a bk.

[papie]

If you think you will need to purchase a car during your 13 plan, I would totally suggest doing it before you file. I'm not sure how all that works because I was one of the stupid people who waited until AFTER I filed.

Anyways, we had to purchase a vehicle one year into our plan. It was the most difficult process ever. Getting permission from the trustee, finding a dealer that didn't want to take us for a ride and would finance us, putting up with insane finance charges, etc. I spent so much time filling out finance applications and making phone calls it was ridiculous. I drive an hour to work so a beater doesn't cut it. My one regret was not purchasing a vehicle before filing. I actually think purchasing a vehicle during an open bk is more difficult that filing the bk itself.

I'm still disgruntled about it. lol

[kornellred]

Cars are very near to an absolute necessity in the American culture - our whole economy is based upon mobility. Unless you live in a city where public transportation is available, you are not going anywhere unless you inconvenience your family and friends. That gets tiresome in a hurry!
Get your transportation issues squared away before filing for bankruptcy. You are going to get taken to the cleaners by the dealer no matter what you do, so get a vehicle that suits your needs and to heck with the big payments.