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Need advice on my car(s)

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    Need advice on my car(s)

    Hello Everyone!
    I'm hoping to get some advice/insight on what to do about my cars. I'm hoping to file Chapter 7 soon (in the interviewing stage for an attorney). As I explained in an older post a while back, my step-father stopped paying the rent in January (an agreement between him and my mother, she lives with me) so I had to cover the rent, which left very little after utilities, etc. to pay my own credit obligations (which is why I need to file for bk).

    Anyway, part of those obligations are two cars (mine and mom's) both are leased. I haven't made payments on my car since January, but I did pay my mom's car in February and March due to the lawsuit with the manufacturer that was going on (needed to keep the account in good standing).

    I just concluded a lemon lawsuit over my mother's vehicle, and should be getting the settlement check in about 30 days (not a huge amount). Three weeks ago, my car died for much the same reason I just finished suing them for on my mom's car (battery won't hold a charge, and manufacturer claims that I HAVE to drive it at least 30 minutes continously a day...which I can't, I have a short commute). I can't get the car towed/fixed, obviously because I'm behind on the payments. I can't even pursue legal remedies over the faulty vehicle because of the deliquent payments. So, it's sitting dead in my driveway and I'm figuring it will get repo'd at any given point because of the late payments.

    Because both cars are on my credit, I can't get anyone to finance me for a used (reasonable) vehicle. Do I use the stock-piled cash I have right now (settlement, etc.) to just buy a used vehicle for cash, or will this negatively impact the future bk 7? (in other words, here I have two cars, yet I'm getting another). For the record, I have no way of catching up on the past due payments as they have gotten too high. I'm at a loss for what to do, and need to get working transportation soon, as my co-workers are getting frustrated with my begging for rides daily.

    Thanks in advance for any advice!

    #2
    Check your vehicle exemptions allowed for your state here: www.legalconsumer.com

    It is not possible to know how it will impact your BK without knowing your specific info: location, income, exemptions, etc.
    Filed CH 7 9/30/2008
    Discharged Jan 5, 2009! Closed Jan 18, 2009

    I am not an attorney. None of my advice is legal advice in any way..

    Comment


      #3
      Originally posted by StartingOver08 View Post
      Check your vehicle exemptions allowed for your state here: www.legalconsumer.com

      It is not possible to know how it will impact your BK without knowing your specific info: location, income, exemptions, etc.
      I'm sorry I didn't give the specifics, my apologies (a little bit scatter-brained this morning). I'm in Northern Virginia. My income is $66k a year (mom lives with me and I support her completely), I'm about $600 over the median income. The exemption amount for vehicles in Virginia is "motor vehicle to $2,000".

      Comment


        #4
        Unused portion of homestead or personal property exemption
        Last edited by StartingOver08; 04-30-2009, 06:33 AM. Reason: add info and spelling
        Filed CH 7 9/30/2008
        Discharged Jan 5, 2009! Closed Jan 18, 2009

        I am not an attorney. None of my advice is legal advice in any way..

        Comment


          #5
          Originally posted by StartingOver08 View Post
          Read all the exemptions available to you - it is a real art to finding the right exemption to use. There are many more specific exemptions you have available not show above.

          Some people buy a newer car before filing BK so that you have a payment and no equity. This is a strategy you would need to analyze for yourself.

          In my opinion I would be extremely reluctant to take on additional debt. Try to work with a 'beater' car to get through the Ch 7, and get your household budget in order. If you decide to buy a car that is in the $5k range and finance part of it for a short time, that is a possibility too. It is unlikely that a $5k range car has any equity.

          You need to check the valuation model used in your district to determine what your Trustee will show as equity. Here in Fl they use NADA Retail. Every district uses different valuation models. Your attorney will know which valuation model your district uses.
          Thanks so much for the info/reply. I was actually thinking of the 5k range as I have 50% to give down right now, and they would probably be willing to finance the remaining amount. I guess I have a lot of thinking to do! Thanks again!

          Comment

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