Car Done and Done

[eltaur2000]

I'm the proud owner of a NEW 2011 Fully loaded Maxima that I truly love. It should last me the 60 months I'm going to need to get over Chapter 13.

I managed to get rid of a 9k asset on the books and turned into a debt.

$391 for 72 months. Illinois ownership exemption is $497.00.

[mountanddo]

I sure hope you know what you are doing. I'd really be leary filing bankrupcy right after I purchased a brand new 2011 fully loaded car. When I spoke with my attorney I asked her if I could get my DMI any lower than $100 and she said that they probably wouldn't think my plan was feasible any lower than that. I still can't wrap my mind around the fact that you can file bankrupcy and purchase a brand new car right before and not have that scrutinized but then I don't know anything about the bankrupcy law.

Emphasis on the red flag. It looks like you are looking at a $30K car. The car I bought that raised no questions was a $16K car. I'm guessing from your other thread that you are trying to figure out how much of a car payment you can handle and still propose a feasible plan. Also, don't run out and buy a car based on what you learn on this board without first consulting with an attorney. Don't rely on your own estimates. You need to have an experienced attorney run your numbers. Many people who make their own estimates are surprised when their attorney tells them what their plan payment will be.

I hope that you at least consulted an attorney before you made this purchase.

[eltaur2000]

He said It was absolutely fine if I intend to pay the car in full. He said don't miss payments make sure it's up to date. I'm not filling for at least 3 months. I fully intend to pay my car in full.

[lrprn]

Whether eltaur2000's filing gets scrutinized or not around this new car purchase right before filng depends on the trustee assigned to his Ch 13 case and how the local bk court has dealt with new car purchases right before filing in previous cases. An experienced bk lawyer who frequently files Ch 13s in that court will know the answer. Here we are all just making guesses.

Since it appears the new monthly car payment is lower than the court suggests as the maximum, chances are good that no issue will be raised. Pre-planning for your Ch 13 to arrange reliable transportation that lasts through the 13 is *NOT* fraud as long as the purchaser intends to pay off the car loan in full.

[mountanddo]

Whether eltaur2000's filing gets scrutinized or not around this new car purchase right before filng depends on the trustee assigned to his Ch 13 case and how the local bk court has dealt with new car purchases right before filing in previous cases. An experienced bk lawyer who frequently files Ch 13s in that court will know the answer. Here we are all just making guesses.

Since it appears the new monthly car payment is lower than the court suggests as the maximum, chances are good that no issue will be raised. Pre-planning for your Ch 13 to arrange reliable transportation that lasts through the 13 is *NOT* fraud.

I certainly did not mean to imply that it was fraud. My point really was that I wish I had known that this was acceptable as I might have gotten a car loan before my credit was totally trashed. Now it's really too late.

[eltaur2000]

I certainly did not mean to imply that it was fraud. My point really was that I wish I had known that this was acceptable as I might have gotten a car loan before my credit was totally trashed. Now it's really too late.

I have this forum to thank for this advice. Not because I got a new car to be cool or anything wrong.

I got everyones opinions and then I ran it by my attorney and he told me on Friday "Do that today". He also said that chapter 7 was not out of the questions if I was willing to give up the watch.

This car really has to last me 10 years 60 month on payments and another 5 to fix my credit.

[momofthree]

I certainly did not mean to imply that it was fraud. My point really was that I wish I had known that this was acceptable as I might have gotten a car loan before my credit was totally trashed. Now it's really too late.

I think you have posted before that you don't have the dmi to fund a car payment. So *for you* buying a car might have meant that you couldn't file bk due to infeasibility. Your situation is not the norm for ch.13 cases though. Most debtors can safely buy a new(er) car prior to filing with no negative effects.