New car question

[2much2]

I am going to be filing chapter 7 or 13 by probably January or so. No sure if I will pass means test or not. I am interesyed in a new vehicle while I still have good credit. I went out today to look and am about 7k under on my 2007 Dodge that I would have to rool over. Just too much to do it. If I bought a new car without trading my current on in and let it get repo'd or take it back to the dealer(how does this work?) and drop it off would that be OK? So essentially just buy and new on and stop paying on the current loan. I am stopping paying all bills next month so need to move quick. Thanks

[StartingOver08]

Don't roll the neg equity into the new car. Since you are filing Ch 7 you can surrender the old one in the BK rather than do a repo. All you have to do is select the "surrender" option on your statement of intentions in your BK petition. Once you are filed, you can contact the lender on your old vehicle and arrange a pick up.

As for the new one, you will select 'reaffirm'. Make sure the lien is perfected on the new vehicle.

[2much2]

"Make sure the lien is perfected on the new vehicle" What did you mean by that. So if I bought one now and 3 vehicles with loans(my wifes included) I can just let the upside down on go? It wont look strange to the courts?

[TBLTZ]

I am going to be filing chapter 7 or 13 by probably January or so. No sure if I will pass means test or not. I am interesyed in a new vehicle while I still have good credit. I went out today to look and am about 7k under on my 2007 Dodge that I would have to rool over. Just too much to do it. If I bought a new car without trading my current on in and let it get repo'd or take it back to the dealer(how does this work?) and drop it off would that be OK? So essentially just buy and new on and stop paying on the current loan. I am stopping paying all bills next month so need to move quick. Thanks

Yes you can do this without issue. You usually have to wait 90 days before you can file once you buy the car but in some states i don't think it matters. Just don't put a lot down on the new car because then the trustee will want to sell it to make money. I would put down only a few hundred. The car you don't want anymore you can release in the bk. Just don't let them repo it before the bk as it will look worse on your credit report.

[StartingOver08]

]"Make sure the lien is perfected on the new vehicle" What did you mean by that[/B]. So if I bought one now and 3 vehicles with loans(my wifes included) I can just let the upside down on go? It wont look strange to the courts?

Look at this article by Moran Law: http://www.moranlaw.net/car-ownership.htm

No, it won't look strange to the court to have three vehicles, especially if you are surrending one or two in the BK. The previous poster is right, if you have a repo before the BK it will look worse than just surrendering the vehicle in the BK.

[liz417]

Yes, get the new car before your credit tanks. I was told to make a couple of payments on mine before I file for BK. Also, I didn't "reaffirm" my vehicle, my attorney checked the "other" box and put "remain current", which is basically a "ride-through"

Good Luck!