cars purchased within 90 day period

[coolmom04]

I meant to post this here, but it's in the repossession forum, too.

We bought our vehicles on Dec. 28, 2009 and are filing Wednesday March 10th. If you've read my other posts, you know why I can't keep them. Since we are now surrendering both vehicles, won't it be a problem to file since we purchased them within the 90 day grace period? If it's going to be a problem (the attorney will tell us Wednesday), we can wait and file, but I wanted to see what input I could get here so I can stop stressing over this part.

[Meatstick]

I think you will be just fine. if you don't have the funds to pay you don't have the funds. Better to be rid of it all than start your new beginning struggling.

Good luck.

[caseypoi]

i'm curious of the same thing. i need a car but am deciding whether to just get a POS bucket or finance a used/new vehicle (all this before i file for bankruptcy in May)...

[jandrl2001]

We bought our Honda in 9/08, filed 12/08 and surrendered it and 2 other vehicles without an issue. The fresh start was much better than still owing 20k for a car. You should be fine.

[coolmom04]

We bought our Honda in 9/08, filed 12/08 and surrendered it and 2 other vehicles without an issue. The fresh start was much better than still owing 20k for a car. You should be fine.

Thanks for that info. Definitely looking forward to a fresh start!

[caseypoi]

hmmm so if i do finance a new/used car, and later file down the road, i'll more than likely have to surrender the vehicle? what if i buy a vehicle outright (say a $2000 crappy one), will that automatically be surrended when i file as an 'asset' of mine?

[coolmom04]

i'm curious of the same thing. i need a car but am deciding whether to just get a POS bucket or finance a used/new vehicle (all this before i file for bankruptcy in May)...

I wasn't even worried about filing within the 90 days since I had originally planned to keep the cars. It wasn't until we decided to surrender them both that it made me nervous

From what I remember, a lot of people on here have financed vehicles right before filing (even at the advice of their attorney) and had no problems since it was a secured debt and therefore not assumed to be fraudulent. (at least I think this is how it goes).

BUT - knowing what I know now, if I could go back, I would have just bought a used van outright and not replaced my husband's older car. I don't ever want another car payment again.

[caseypoi]

thing is that i have hopefully a $2500 or so settlement coming my way because of a car accident. in the accident my financed motorcycle was totaled (i wasn't at fault), but the amount financed to the bank looks like it's going to be covered (by the other insurance company and by my gap insurance).

in the mean time, i don't have a car/a way to get to around. i wanna use the $2500 or so as best as I can, but i don't know if i should 1) use it to hire a lawyer for the bk NOW, and get by by bus/friends for awhile, 2) use it to buy a car without financing, 3) use it as a down payment on financing a new/used car... so many questions...

[AngelinaCatHub]

hmmm so if i do finance a new/used car, and later file down the road, i'll more than likely have to surrender the vehicle? what if i buy a vehicle outright (say a $2000 crappy one), will that automatically be surrended when i file as an 'asset' of mine?

No it will not "automatically" be surrendered. It would be an asset in the event your state does not cover it in exempt properties. Here in FL we only have a 1K auto exemption. You could buy the asset back from the Trustee, but it would lengthen your bk. Also, the Trustee may just abandon it as a used "too much trouble to sell" asset of no real value for the trouble. 'Hub