Should I use credit to buy a car before BK?

[HelpMeFast!]

It seems to be the general consensus that if you need a new vehicle that you should buy it prior to filing. I have a wife and two kids (and my Mother most of the time) and we have one family vehicle that is good shape and that we all fit in (2001 Suburban). My truck that I drive to/from work in has about had it. It's a 1999 Mazda B2500. It is the base model with a manual transmission and rubber floors. It has hail damage, transmission problems, and needs a few other repairs like the brakes. Worst of all, only two of us can fit in it at a time! We've been getting by but just realized that BK might be our only option out of debt. Should I use a credit check or cash advance to but another vehicle before filing? If I can't get to work, were are finished. I was going to try and find something reliable for under 5K. Would this fly later or would I get into trouble? If not, I can't wait and just hope this doesn't die on me. THanks for the help!

[CATCHMEIFYOUCAN]

They say using credit card before filing is not WISE simply because you know you are declaring BK.
They say having cash advances just before you file is not WISE, you would have to play it safe and wait about 180 days before you file from you last cash advance.
If you are going to buy a car and you have to use a credit card (use the cash from the cc not the cc itself - so get the cash advanced).
END RESULT you may be held liable to pay that back as that would be some form of fraud IF they can prove it.
I will tell you this though:
My last BIG cash advance from one of my cc's was $2-$4 possibly $6 grand in APRIL 06 (due to gambling). I filed Bk Ch13 in JULY nothing was mentioned at my 341 meeting about THAT or my gambling (knock on wood), since than though I converted to Ch7 (in October), I had another 341 meeting in NOV, now I'm waiting for discharge hopefully in January. TO ME alot of time has gone by since my last cash advance if you include all the days/months since my filing.

They say wait at least 180 days before your last cash advance before you file, time between the use of your cc and filing Bk is your friend. So think about it.

Oh my car got flooded just before I filed, So I had to get a new car!

Best of Luck, Catchmeifyoucan

Filing in the State of Virginia, awaiting discharge in January 07

[down @ out]

buying car before bankruptcy

Guess it was about 9 months before if filed bankruptcy that I realized a new car was something I needed to do. The car I had was about shot and I could see the handwriting was on the wall and more than likely I would have to file.

Had a lot of credit card debt and with the increase in minimum payments, etc., the party was about over.

Anyway at the time I had great credit and was able to get a new Honda with 2.9% financing. Looking back it was the best thing I did. Now I couldn`t touch a car without paying way too much and this vehicle should last a long time until my credit can get back to where it should be.

One thing that appealed to me greatly was that I filed under the old law and I was able to keep the car without re-affirming the debt as long as the payment was current.

Guess at the end of the day you have to realize if you need a car you are in far better shape to purchase it now than to try and deal with all the folks who will try to stick it to you because you will have bad credit.


Down & Out

[keepmine]

You are better off getting conventional auto financing.
If you use a cash advance check, and pay for the car, you may well end up with a car that has more equity more than your state allows for an exemption.
Not to mention the problems with a cash advance that others mentioned.
You need to get a few consultations with some bk lawyers and get all of your options explained.

[HHM]

There is nothing wrong, per se, with buying a car before BK (but it has to be a reasonable purchase...where people can get in trouble is if they were driving a 10 year old Chevy Cavalier , and right before BK, buy a a new Acura TL.).

However, whatever you do, do not buy a car on a Credit Card, or use a cash advance on a credit card (even if you weren't going to file BK, that is a pretty bad financial move because of the way interest is compounded). If you're going to buy a car, try to get conventional auto-financing. If your credit is already shot, you may also want to try the Capital One Blank Check Program (there are posts in the Rebuilding Credit forum about it).