Another Newbie Question - Automobiles

[momofthree]

Keep each car payment below the IRS standard of $496/mo and you'll be fine.

[memuzz]

I went through a similar situation after I had filed. I was driving a clunker and we knew we had to purchase a car before filing. We were already approved for a car loan.
The car loan was absorbed into our plan and paid through our plan. If you haven't filed yet then it would be advisable to get a car before your file.
It was unfortunate that the car was going bad only after having the car for 2 plus years. The front end was messed up pretty bad and the security system because of the car's computer failed which meant it would cost quite a bit to replace it. We had no choice but to trade in the car for another while still in the chapter 13. The court had paid off the car within 2 years after being confirmed. We were paying $800 a month to the lienholder through the bankruptcy court. It was priority claim.

So I contacted my attorney and asked her what to do about incurring debt to purchase another car. She said for us to get approved for the loan then she would petition the court for us to incur debt. We found a finance company who worked with individuals in an open chapter 13. Our trustee tried to stop us getting the car but the judge allowed the debt. We paid the loan outside of our plan. Our case is discharged.

I know from personal experience with a vehicle over a certain amount of miles that things can start to add up unless you have a good warranty on the car. If you have someone who is reasonable and nothing serious goes wrong with the cars then maybe you'll be all right. I would rather be safe then sorry. Remember that if you haven't filed that it is better to get a car loan before than during your case. Best wishes.

[Anne2012]

Memuzz - thanks so much for the clarification! That helps. We are approved for one loan as it stands, and will probably try to get another before we file yet this month. From what we have been told, there is no way we will have room in our budget outside the plan for any kind of payment. If a car dies, it would not be good! Thanks everyone!