quick question?

[KeithG]

Soo like i have said in previous post i will be filing chapter 7 soon, how ever in the mean time my $800 used car is starting to crap out on me, i am a pretty good mechanic however it will need expensive repairs. i have found a place that will finance me with a sub prime lender ( i know, high rates) and i realy need a car, i have a hour round trip to work. obviously i am not going for the BMW i just need reliable transpertation, will this effect my BK if i get financed? i will reafirm the debt with out a doubt.

[Amy26]

I purchased a car before I filed, brand new actually... but I bought it on 3/31 and didn't file until 6/10 ... so I dunno if that makes a difference. But of course I have like instant negative equity so the trustee didn't care about it. I would just make sure there either won't be any equity in the car or the equity falls in line with your district's car allowance.

[Calthius]

No it shouldn't affect anything. We were in the same situation with a car that we owed way more than it was worth with 150,000 miles on it. We were able to get in a very good used vehicle with a factory warranty and we filed before we made our first payment on it. Our interest rate is high but that is to be expected since my credit score was somewhere around a 530.

Our lender sent out a reaffirmation agreement and we signed it right away and sent it back.

Now here is the kicker. The other vehicle we had that we decided not to keep, which is valued around $3,000 and we owe about $6,500. The lender doesn't want the van. I called them right after we filed to make arrangements for them to come and pick it up and there response was. It isn't enough value for us to come out and get it.

[Amy26]

My lender hasn't sent me a reaffirmation agreement.

[Calthius]

You may want to contact them and ask them for one if you are sure you are reaffirming. By auto lender and mortgage lender didn't even know that we were in bankruptcy. I had to call them and tell them. This was after our 341 meeting. As soon as I gave them the case number they contacted our lawyer and sent out the reaffirmation agreements.

To even sweeten the deal our mortgage lender dropped our interest rate 3% because we were unsure as to if we were going to keep the house.

[jribe]

Soo like i have said in previous post i will be filing chapter 7 soon, how ever in the mean time my $800 used car is starting to crap out on me, i am a pretty good mechanic however it will need expensive repairs. i have found a place that will finance me with a sub prime lender ( i know, high rates) and i realy need a car, i have a hour round trip to work. obviously i am not going for the BMW i just need reliable transpertation, will this effect my BK if i get financed? i will reafirm the debt with out a doubt.

does your car qualify for the CARS program (AKA cash for clunkers)? $3500-4500 is a good chunk; and many dealers are giving additional incentives.

You'll be fine with getting another car. It's allowed to get a car - most people need one. You won't have issues with having a financed car. You'd have issues having a completely paid off car (with equity or high KBB) because you'd need to exempt it.