Auto arrangements questions?

[Intoodeep201]

Here's my situation. I just found out that we won't qualify for a Ch7. Even with reduced hours we still make over the mean for our area, and our expenses will allow enough for a payback.

I need advice on my auto situation. I currently have (and need 3). My wife has her car that see drives. I have 2---here's why. I drive 160 miles per day to work (40,000-45,000 miles per year). I must have a 4wheeldrive for winter because I MUST be a work (we have NO sick or personal days and unless I show proof of dr. visits or medical necessity I run the risk of being fired from work if I miss ANY unexcused days.) They are extremely strict but the pay is worth it and I love what I do. The 4x4 is paid for and the dealership just offered me $6000 if I traded it in on another. (just checking value for the bankruptcy). However it gets about 14mpg. So I bought a old used work car that gets 34mpg but it has over 177,000 miles and will not last 5yrs of bankruptcy.

Here's my question If I purchase a new chevy cruze and get rid of my work car will there be any issues? If I kept the 4x4 as my only vehicle I would need about $1100 a month for gas allowance (just for the 4x4). If I got the cruze I would need less than what I currently spend, which is about $400 for work.

As you can see the work car more than pays for itself, however I still need the 4x4 for emergencies ( I MUST be at work). Will there be an issue with this?

I have found the cruze I want, and got approved for the financing but can't loose the 4x4 or my wifes work car (it has a high payment but is current). I am current on all bills except for credit cards.

Thanks for any input you can offer.

[lrprn]

Usually in Ch 13, most trustees base the number of cars allowed expenses on the Means Test and Schedules on the total number of drivers in the family. You have three cars and from your description, only two drivers.

In your situation, it's going to depend on how your trustee feels about your explanation for the need for you to have two cars to maintain your employment. Also since one of your 4x4 car is paid off, can your Illinois auto exemptions protect $6K in value completely or not.

If you haven't set up your free initial consultations with at least 3-4 experienced bk lawyers who frequently file Ch 13s, then it's time. Describing your car situation and getting insights from the lawyers about how the Ch 13 trustee in your local court will interpret it should be your first question every time.

A question for you.....since you are going to replace your car, why not get a newer 4x4 car that gets decent mileage, trade in the paid off car *and* the beater to help finance it, and get your car needs down to one? This way your car situation resolves itself and you get reliable transportation for all seasons too.