Car purchase

[NCfellow]

OK, here's a question on cars. We live in NC and will file within two months. We own a $3,500 car and lease another ($250/month). Will it look bad/fraudulus to the court to turn in our lease and buy a car with $400 a month payment so soon before we file? Essentially we are "upping" our payment $150/month.

Is it the equity allready put into the car that determines if you can keep the car or not? My lawyer is supposed to call me back on this, I just feel I need a second opinion as well.

Thanks.

[InLimbo]

Hi NCfellow, we live in NC also. Our lawyer suggested that we get a new car before we filed because all of our cars were older with over 100k on each of them. We purchased a new car at the end of July and filed last week. He told us that we did not have to wait the 90 days and it would not be considered fraud because we needed something more dependable.

[CATCHMEIFYOUCAN]

Buy a new/used car!

Definitely get yourself into something reliable, I don't see how "leasing," would be bad if you are giving it back to the dealer. I never understood leasing cars to begin with, just my opinion, isn't that like throwing you money away? Why not just buy the car, and make monthly payments. Anywho, that, I'm sure is another subject (probably for general talk).

I owned a 99 Accord, paid up and everything (more or less), put it this way, I didn't have a car note. But the darn thing got flooded, so I was able to get myself a new car just before I filed. SHREWWW. I got rid of the Honda for good reason, so the lawyer or trustee did not frown upon it. I could have taken the insurance money and fixed it up, because they didn't TOTAL my car, they gave me enough to replace the motor. WHATEVER .. so I used the money and bought another car.

Get yourself in something good an reliable. Nissans don't have Timing Belts! I don't have any preferences in cars, but I did by myself a new 2006 Sonata (basic model only).

And the more reasonable expenses you have that the IRS Standards allow, the less your "disposable income." It helped me in a way to have that car payment, otherwise my disposable would be more than what it they want!

Good Luck, Catchmeifyoucan

[NCfellow]

Thank you so much for those replies and explanations. Lawyer still hasn't called me back.

[Lhen1059]

we had two vehicles financed with cu our lawyer advice us to buy a new vehicle and sign a re-affirmation. CU repossed the two vehicles upon learning that we are in the process of filing bk one month before bk filed. We received the discharged last month.