Car Purchases Prior to Chapter 13 Filing

[salsa]

So we are going car shopping in the next few weeks. Is it better to get a payment close to the $496.00 or stay around $350.00 or doesn't it matter? Just wondering which would give less money to the creditors.

[lillymarlene]

$496.00 would give less to the creditors. I could be wrong, but different states may have different guidelines about size of car payments.

[LadyInTheRed]

Your payment should be no more than you could afford on your income after discharge of your unsecured debt. Be careful not to have such a high payment that you are unable to show enough dmi for a feasible plan.

[salsa]

Should be no issue with having enough DMI for a feasible plan. Just trying to lessen what the unsecured creditors get.

[debtinohio]

Mine were $599 & $600 but I'm a crap example.

Provided you have the DMI to pay this payment and you're not buying a luxury brands (they just get scrutinized) then rock on with the $496.

[salsa]

My next fear of course is getting financing. Lots of charge offs from 2007, judgments. I checked my credit a few months ago, and it was 620. Franky, thought it would be much worse. Never had any late payments or repossesions on vehicles, so maybe that will help.

[catleg]

Don't worry about getting financing. The rate may be higher but they'll give you a loan.
If you let the trustee make the payments he'll jam down the rate so he gets more money for unsecureds.
Just make sure the loan lasts as long as your ch13 plan.