top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

legality of buying a new car

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    legality of buying a new car

    OK, we filed on 10/12 and our 341 is on 11/16. The car that we currently have that is not paid for is a 94 Pontiac Grand Am that was purchased at a buy here pay here that does not pull credit histories, nor reports to them. Since buying this car, it has shown some major problems, and we aren't very interested in keeping it unless we have to. These problems have only shown up in the last 2 weeks, after we've already stated that we will reaffirm on our paperwork.

    Since we filed, we've had about 4 offers in the mail from car lots promising us financing. Can we legally even buy a car right now? I'd like to think that these car lots wouldn't purposely try to mislead us, but let's face it, their used car salesmen! (no offense to anyone!! )

    If we repair the car and reaffirm, it still won't benefit us in regards to our credit rating, and with a car that old, it's not going to last all that long anyway. Whereas, all these lots are saying the new car would need to be 2002 and newer to qualify. Our payment right now on this car is 250.00 per month, and we definetly could not go any higher right now on a payment.
    Tags: None
    #2
    You are not locked into reaffirming, even though you indicated it on your statement of intentions. The buy here/pay here can't repo during the automatic stay unless they file for a motion to lift the stay. I would be surprised if they did that-as they would have to pay an attorney to represent them.

    Perhaps the best idea is to hold that $250/mo for now and put it into getting something a bit more reliable after discharge.
    Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.

    Comment

      #3
      Buying another car from a bankruptcy-friendly place will likely land you in the same spot you're in now. You'll make pretty sizable payments on a not-so-great car. Since you don't qualify for traditional financing, and you don't have much savings, your options are limited.

      The best thing to do is to save as much as you can and pay for a car in cash. Then start saving again to buy a better car and so on.

      Comment

        #4
        Originally posted by Lightning
        Buying another car from a bankruptcy-friendly place will likely land you in the same spot you're in now. You'll make pretty sizable payments on a not-so-great car. Since you don't qualify for traditional financing, and you don't have much savings, your options are limited.

        The best thing to do is to save as much as you can and pay for a car in cash. Then start saving again to buy a better car and so on.
        This is sound advice......if you cant do this in its entirety, then simply save, save and save. Re-establish good credit, so that you can qualify for a single digit interest rate on your financing terms.
        The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation.

        Comment

          #5
          Surrender It?

          How does a SURRENDER work??? What will happen, and in what timeframes???

          I did NOT check any of the boxes (exempt, reaffirm, redeem) but simply listed it under "retain" on my Ch. 7 Statement of Intention.

          My 341 meeting is 11/17. My next $283 payment is due on 11/16... otherwise I have kept my payments current...

          The www.kbb.com says the book value is about $3,500 and I owe (woe) $4,500 and the vehicle -maybe- needs a new transmission -- at $1,500 plus labor!

          NOW, I am thinking, it would make good sense to SURRENDER it, not make another payment!!!

          Why keep making payments on a car with negative value??? I can save $283 per month, and borrow a car when I need one for a few months...

          What can I expect -- what will happen if I simply stop making payments.... I guess I can delay a few weeks... but, how does a SURRENDER -- or repo -- work?

          ANYBODY have some experience - or friendly advice - in this situation?
          Last edited by quest42; 11-02-2005, 11:36 AM.
          I'm in N. California ... Thanks for your replies!
          10/11/05: bought www.form7.com software
          10/14/05: Filed Ch 7 BK Petition pro se skeleton
          10/27/05: Filed all schedules, etc.
          11/17/05: 341 meeting (done!)
          01/16/06: Last day to file objections
          01/18/06: Discharged, closed

          Bankruptcy LINKS

          Comment

            #6
            Cars depreciate in value the minute you drive them off the lot, new or used. Unless you take out a short-term, small loan, you'll owe more than its worth. Why keep paying? Because you want a car. If you don't want to pay more for a car than its worth, pay cash or take out a relatively short-term loan and plan to keep it long beyond that loan term.

            Comment

              #7
              Originally posted by Lightning
              Buying another car from a bankruptcy-friendly place will likely land you in the same spot you're in now. You'll make pretty sizable payments on a not-so-great car. Since you don't qualify for traditional financing, and you don't have much savings, your options are limited.

              The best thing to do is to save as much as you can and pay for a car in cash. Then start saving again to buy a better car and so on.


              AGREED!! I have experience with these scam artists and they are con men. I never bought though, just shopped around, the head joker wrote up the agreement when I was only looking and it was for a car much higher then book value at 29% APR

              This is truly one business (bk friendly car dealers) I wish everyone would ignore so they all go away. Trust me they are NOT helping anyone but themselves. No matter what your story is you are better off saving and waiting.

              Comment

                #8
                great advice! i agree.
                Im not an attorney or a trustee. You cant trust me either though!

                [x] - Done with 341? Join the 60 Day Club! ___________[x] - Im Discharged! Whoo Hooo!
                [x] - Poll: Should I File Pro-Se ____________________[x] - New BK Law: Median Income, Means Testing and Presumptive Abuse
                [x] - Zombie Debt Collectors Dig Up Your Old Mistakes _-[x] - Bankruptcy Law Resource
                [x] - Need A Fast Answer? Available 24/7!--__________[x] - Dont Be A Hero On Your Budget - You Wont Get An Award!

                Comment

                  #9
                  The buy here/pay here can't repo during the automatic stay unless they file for a motion to lift the stay.
                  Guess no one told them this... they repo'd last night!!!

                  Comment

                  Previous template Next

                  bottom Ad Widget

                  Collapse
                  Working...
                  X