Buying a Vehicle?

[Joe Franco]

I have decided to file for chapter 7 here in California. I have two vehicles which I owe more than they are worth. One is a SUV and the other is a truck. After I made the decesion to file I let the payments go on the SUV. I orinignally planned on keeping the truck so I stayed current with the payments. I have since decided to give up both gas guzzling vehicles and get something more economical with lower monthly payments. My FICO score was crushed since I let my payments go on the Credit cards the last few months. I was able to obtain a co-signer for another vehicle when I am ready to purchase, so being approved for a loan is not an issue. My Bankrupcy attorney told me under the new law he can not advise me on purchases.

Here are my questions:
When would be the best time to buy? Before I file? After I file? Or after discharge? Basically I need to know if there will be a presumption of abuse?

If I stay current with the payments on the truck I plan on giving up in the bankruptcy, how long will I be able to keep the truck before I must give it up?

Thanks

[CATCHMEIFYOUCAN]

You would more likely get the best interest rate BEFORE you file ! Best of Luck !

Catchmeifyoucan

[BassBoy]

Hard to answer

I have decided to file for chapter 7 here in California. I have two vehicles which I owe more than they are worth. One is a SUV and the other is a truck. After I made the decesion to file I let the payments go on the SUV. I orinignally planned on keeping the truck so I stayed current with the payments. I have since decided to give up both gas guzzling vehicles and get something more economical with lower monthly payments. My FICO score was crushed since I let my payments go on the Credit cards the last few months. I was able to obtain a co-signer for another vehicle when I am ready to purchase, so being approved for a loan is not an issue. My Bankrupcy attorney told me under the new law he can not advise me on purchases.

Here are my questions:
When would be the best time to buy? Before I file? After I file? Or after discharge? Basically I need to know if there will be a presumption of abuse?

IMO, the best time to purchase another vehicle is after your discharge or possibly after the 341 Hearing. It is not recommended that you take on new debts while in active BK. Not to mention, most lenders will not approve a borrower while in active BK.

If I stay current with the payments on the truck I plan on giving up in the bankruptcy, how long will I be able to keep the truck before I must give it up?

Thanks

This mainly depends on the lender. If you are upside down, the lender may drag their feet repossessing the vehicle(s). Nevertheless, lenders will ususally file a motion to lift the stay after the 341 Hearing if you fall behind. From that point, it could take anywhere from 1 to 2 months. Although it could take longer. On the other hand, you could make arrangements with the lender to surrender (deliver) the vehicle to them. That way, you'll know exactly when you'll be needing a replacement vehicle.

[jbr12]

I contacted my lender to arrange them coming to pick my vehicle up. I was upside down for 3 months or so at that point and new they would be coming any time. This way I had plenty of time to get my stuff out so they didn't mysteriously show up in the middle of the night and I was missing some personal things..