I got a new "used" car...now what

[doingpoorly]

I have been wrestling with what to do about having a vehicle after filing because right now I have one that is a loan that costs way to much to reaffirm and one that is a lease that will end one month after I file. I didn't know if I would be allowed to assume the lease and didn't know how I would be able to afford buying it after filing, so I decided to buy a cheapo car before I file and let go of both of the vehicles I already have.
I never thought that I would buy a used car. I never owned anything but new. I know, I know, how snobby. I was terrified to not have the comfort and predictability of a warranty. I didn't want to drive around with someone else's half eaten and petrified french fries stuck in a inaccessible crevice creeping me out and making me wonder what else went on inside the car. Ewww.
But now that I actually found a car that was owned by a little old lady , I am so happy that I decided to move out of my comfort zone. One small step I know, but I feel so different now that I know I will have a car to drive after filing and that it is something that I can actually afford.
It is an absolutely wonderful feeling. I wish that I had done this sooner. Maybe I could have kept myself from being so deep in debt.
I will be late on my unaffordable car loan for the first time in the middle of June. (I was just late on one other bill for the first time earlier this month) I can't wait for them to have that lovely overpriced beast. My lease car I plan to keep until I give it up after filing and then let them have it.
My question is this.....
I got a loan on the new affordable car last week. I will be able to make two payments on the loan before I file August 1st and I will be able to afford it after I file. Is this enough time? I mean will I be looked at badly because I took out a new loan even though I could not afford the other loans I had at the time. Will I need to rethink a filing date? Please tell me that I didn't do something that will keep me from moving forward with my plan to file in Aug.

[JRScott]

It wouldn't look bad, lots of folks let go of vehicles they can't afford and get something they can even before filing. It is a normal part of process and will not raise any eyebrows and I doubt even gets mentioned other than Are you reaffirming this one or surrendering it? (They'll ask that for each vehicle).

[OregonMom]

I know at my 341 I was asked if I had purchased or refinanced anything in the last 6 months, I hadn't, but not sure why they would ask that if it wasn't an issue.

[MrSmithster]

if it were me, i would wait at least 6 months, but thats just me. i would think it might raise creditor objections(although at my 341, i was there 3 hours early, and saw only one filer had a creditor show, but they were asking questions like, "did you make these purchases knowing you where about to file bk?") depending on your situation and filing. buying a costly item on credit right before filing would seem to be a flag just begging to be noticed, but i filed Pro Se, so took no chances at all so everything go smooth(hopefully).

[doingpoorly]

if it were me, i would wait at least 6 months, but thats just me. i would think it might raise creditor objections(although at my 341, i was there 3 hours early, and saw only one filer had a creditor show, but they were asking questions like, "did you make these purchases knowing you where about to file bk?") depending on your situation and filing. buying a costly item on credit right before filing would seem to be a flag just begging to be noticed, but i filed Pro Se, so took no chances at all so everything go smooth(hopefully).

I don't think that the creditor will question or raise an objection to me taking the loan so soon to filing. It wasn't with a major bank or finance company. The loan was given by a person.(FYI- They are on the title as lien holder and there is a promissory note)

Are you saying the only way it may be a problem is if the creditor on the new loan objects to me taking a loan out so soon before filing? If that is the only problem then it will be a non problem for me.

Will the TT care at all?

[MrSmithster]

are they the only ones listed on the title or are you on the title also? all active loans which you still owe are supposed to be listed in your filing. are you going to hide/omit this loan from your filing? reaffirmation? have you had a consultation with a lawyer yet? i filed by myself, but i did go to 2 consultations and asked alot of questions, i learned alot of specifics about my situation from them. most consultations are free, the 1st one even gave me my means test results. by the way, how much is this car worth? are you planning on chapter 7 or 13? assest or no asset? if its worth more than the $3500 auto allowance, does florida have a wild card exemption like calif? if not and its worth more than $3500, how you gonna keep it(without a reaffirmation or hiding it)? interesting...

[JRScott]

My understanding is they plan to reaffirm this newer cheaper car while letting the others go which is perfectly legal.

[zpbk13]

We are doing something similar. I did not have a vehicle so before our credit tanked I bought a 2009. Have made 2 payments so far on it. I am hoping to redeem it through a loan from Redemption 722 and cut the loan term down from 6 years to 5. I am surrendering my interest in a co-signed vehicle of my son and hubby is doing a ride-through on his vehicle and then early next year we are buying a work car for him and letting his SUV go. We have spoken with our attorney and she said what we are planning to do is perfectly fine. Our goal is to be ready to file at the end of this month.

[CH33 Paralegal]

Make double sure that your lien is perfected before you file to ensure that the debt won't be regarded as general unsecured. That wouldn't be fun.

Other than that, you may have to account for whatever down payment you paid. You may be advised to wait a month or so. I certainly wouldn't pay the car ahead because that would show preferential payment to certain debts while others go unpaid...especially when the debt you pay off happens to be tied to an asset you want to keep.

[doingpoorly]

Make double sure that your lien is perfected before you file to ensure that the debt won't be regarded as general unsecured. That wouldn't be fun.

Other than that, you may have to account for whatever down payment you paid. You may be advised to wait a month or so. I certainly wouldn't pay the car ahead because that would show preferential payment to certain debts while others go unpaid...especially when the debt you pay off happens to be tied to an asset you want to keep.

Thanks everyone for your comments.

CH33
The application for title has the lien holder listed but we will wait to make sure it shows up correctly on the official document. You are right unperfected would be not so fun. Really not fun. I put nothing down, but did pay a portion of the taxes, hopefully that isn't to much. I will only be paying two payments that total no more than $300. Hopefully this is all done correctly. I had no choice but to find something more affordable and let the others go. My new payment is 1/4 of what my old payment was and will be paid off so much sooner. Yipee