getting a new car loan before filing chapter 7

[kennyo]

Hey folks,
I have been hitting the search button on this situation of mine but am still confused.I live in new york and am trading in my 2003 mustang gt(no lien,its paid off)for an amount of 5000 at a chrysler dealer for an 06 dodge charger.After trade-in and tax i owe just under 15000 with a 250 a month loan for 6 years at 6.9%.I keep reading on here about reaffirming loan,etc..Not sure what all that really means.Basically,i guess what i really want to know,is this car now untouchable by trustees and will judge allow chapter 7?My lawyer says yes,but i am still nervous about this move,
Thanx for the help

[kennyo]

oh-by the way-not defaulting on new car loan-intend to keep loan and pay it

[Brighterdays]

You might want to check to see who lets you keep the car. I have read on here that credit unions are very difficult. I have also heard that ford is very difficult. that is about all the help I can give you. I thought about doing the same, but I will keep what Ihave for now.

[keepmine]

You need to get your transportation needs squared away before you file.
That's a reasonable car payment and finance terms. I think your lawyers right. If you file shortly after buying, the lender may insist on a reaffirmation agreement.

[lrprn]

Here's a link to NY bk exemptions - http://www.legalhelpers.com/us-feder...xemptions.html

Your NY state exemptions can protect up to $2400 of equity value in one automobile. What is your 06 Dodge Charger worth compared to its current market value in your location and in its present condition?

If the Charger has less than $2400 in equity (loan value minus car's real value) then your car is safe if you file.

Reaffirmation means that you sign a legally binding agreement that you assume responsibility to pay off the car loan in full after you file bk. If something bad happens to you financially after filing (job loss, illness, etc), you'll still be responsible for paying off the car loan.

Depending on where you live and who your car lender is, most bk lawyers will recommend not signing a reaffirmation agreement. Auto lenders don't want to repossess your car, they want you to pay off the loan. As long as you continue to make car payments on time every month without fail, the large majority of lenders will not insist on you signing a reaffirmation agreement. If you have unexpected financial problems in the future, not signing the reaffirmation agreement allows you to walk away from the car owing nothing.