Need New Car (used) and filing Ch. 7

[Falcon]

I bought my first home in March of 2009 (worth $130K). I am current on my mortgage payments, but have $30K in CC debt that are all about 3 months behind. I will remain current on the mortgage, but will I be able to keep the home despite having no equity? (I live in Georgia).

My car is on its last leg and I have good enough credit as of now to purchase a used pickup (F150) for $15K. Should I do this? My Eclipse is a piece of junk and I need over $1,000 worth of work done to it and its only worth $1200 as is.

I am single, make $2,000 per month (before taxes), have an $800 mortgage and no car payment as of now but that will change if Im able to get the used truck.

Is this viable? I have to get to work somehow as my car is in need of some major repairs. Thanks.

NB.

[pcn]

If you are positive you are filing, I would get one before your credit tanks. That is almost the universal recommendation here. Part of the key is to get one with less equity than your exemption allows. By the time we realized we needed to do this our credit was so bad that the down payments required were much greater than our exemptions, and would have put that equity at risk when we file. Another consideration, don't move protected funds to buy a vehicle. Try to keep as much financed as possible to minimize your exposure.

[jjsmith]

Falcon-
Yes, you can keep your home. I believe your exemption for your home is $10,000 of equity. But a trustee would have to pay costs of selling the property, so as long as your home is worth less than $150,000 you should be okay keeping your home.

I'm not sure of all of your financial details. Do you have a roommate paying part of your mortgage? Because it just doesn't seem very likely that if you only have $1200/mo. discretionary money before taxes that you can afford a $300 car payment. It is definitely important to have reliable transportation and a good idea to make arrangements, if you can, prior to bankruptcy.

Unless you have someone helping you out with your mortgage or another source of income, I'm afraid that a $300/mo car payment is going to put you back in another mess. It would be so sad to declare bankruptcy and then end up racking up credit cards again, because you can't afford your expenses.

I too have to get a car, and have been watching the ads for a year to know what prices to expect for what we're looking for. You absolutely can get a reliable car for under $10K. You're close to Florida and Florida has many auto auctions and many dealers that sell cars for much cheaper than other places in the nation.