Job as your credit car dealership

[ilbcertain]

I am about 3 months from completing my 3 year chapter 13. My youngest daughter just got her license and I do not have a third car. I am in now way going to jeprodize my BK but was asking if I went to a < Your job is your credit > place to get a cheap car for her. Has anyone done this before? Would the Trustee find out? If I have to contact my lawyer before hand I probably would not consider it. By the way, I would only be paying around 2K for a car, nothing fancy, just wheels.

Thanks

[AngelinaCat]

If you can pay the cash, 2K will get you a nice used car that is being sold by an individual. You will need to get it checked by a car mechanic that you know and trust.

In this economy, people are selling an extra unneeded car to raise cash. Chances are that you will see SUVs or other gas hogs, but if you look diligently you can find a 'sweet car'.

In our area, former police cars are prevalent. While they may have high mileage, they have been maintained on regular schedules because of what they were used for. They also will tend to be of heavier and sturdier construction. So that might be a safety factor to consider for your precious daughter and her first car as a new driver.

Also, you may get a discount on the auto insurance if she takes an approved 'new driver' course. High schools used to offer Driver's Ed for that purpose. I don't know if they still do.

Good luck to you and your daughter.

[andy158]

I am in my 4th year of our 5 year bk13 and have sold 4 vehicles and bought 3. All under $2,000 and all were cash deals. Just bought a 1996 Nissan 200EX for $1,100 in very good condition. Always bought from individuals and no buy here pay here dealers. If you can drive a stick that is the way to go. Auto transmissions seldom last over 150k without problems. That would be the weak link in any high mileage car.

After doing this over the years I can tell you I will never finance a vehicle again! A car is just transportation and I have grown past the status symbol. I laugh at the guys I work with paying $500+ a month for that new truck they just had to have. As soon as the paper work was signed and they drove it off the lot it is now a "used" vehicle and has depreciated 20%. I will never be strapped with car payments for 5-6 years again. Still paying off a car in our plan and owe $1,200. It has 200k miles on it now and is worthless to anyone else.

[LadyInTheRed]

As long as you pay cash, no problem. If you want to finance it, check with your attorney. In some courts you are allowed to incur a certain amount of debt without court approval. How the trustee would find out that you incur debt without getting required approval is irrelevant. It's not worth the risk.

[magic13]

I am in my 4th year of our 5 year bk13 and have sold 4 vehicles and bought 3. All under $2,000 and all were cash deals. Just bought a 1996 Nissan 200EX for $1,100 in very good condition. Always bought from individuals and no buy here pay here dealers. If you can drive a stick that is the way to go. Auto transmissions seldom last over 150k without problems. That would be the weak link in any high mileage car.

After doing this over the years I can tell you I will never finance a vehicle again! A car is just transportation and I have grown past the status symbol. I laugh at the guys I work with paying $500+ a month for that new truck they just had to have. As soon as the paper work was signed and they drove it off the lot it is now a "used" vehicle and has depreciated 20%. I will never be strapped with car payments for 5-6 years again. Still paying off a car in our plan and owe $1,200. It has 200k miles on it now and is worthless to anyone else.

Wow, so this means that you can buy and sell cars while in a Chapter 13. Did you make a profit

[andy158]

Wow, so this means that you can buy and sell cars while in a Chapter 13. Did you make a profit

Maybe a few $100. Nothing significant. They were purchased from money saved while still in the plan. What you do with money you save while in the plan is your business. I am not looking to make big profits. These were bought and sold to replace work cars upgrading on each purchase. Any profit was rolled into the next one.

[Pandora]

I think this varies on a case by case basis; technically you arent supposed to sell any vehicles w/out the trustee's consent regardless if paying cash or not unless your confirmation order states all property conveys back to you upon confirmation vs. discharge. I know per our trustee we cannot sell any vehicles unless he authorizes it; we can purchase a vehicle using cash if we so choose, but we cannot sell anything w/out his permission.

I second the option to pay cash for a used car if able vs. financing, especially if its a teens first car.

[kmjatl]

"Job as your credit"? Smells like "Buy Here, Pay Here." And regardless of how loose their credit standards are, they will most likely require you to get trustee permission before lending. If they don't, they sound less than reputable...

[LadyInTheRed]

I think this varies on a case by case basis; technically you arent supposed to sell any vehicles w/out the trustee's consent regardless if paying cash or not unless your confirmation order states all property conveys back to you upon confirmation vs. discharge. I know per our trustee we cannot sell any vehicles unless he authorizes it; we can purchase a vehicle using cash if we so choose, but we cannot sell anything w/out his permission.

Excellent point. The bankruptcy code defines property acquired during your plan as part of the bankruptcy estate and requires the debtor to retain possession of the property of the estate unless the plan or confirmation order provides otherwise. http://www.law.cornell.edu/uscode/text/11/1306

[andy158]

Point taken, but I am reading this as big ticket items such as real estate or other high value assets. I am replacing a $1,500 vehicle with a comparably valued vehicle. I went into the bk with three vehicles and still own only three vehicles. Our "estate" value has not changed. I would equate this with replacing a home appliance like a dishwasher or washer/dryer. We recently replaced our home a/c system in June and contacted our attorney for approval. He said if we can pay cash for it there is no need to get trustee approval for spending $3,000 to replace an existing fixture.