Buying Auto prior to Filing Chap 7??

[Amy26]

I bought a brand new toyota corrolla last year in March and then filed in June. I had no problems at all. I would just make sure the payments are reasonable compared to your salary and other expenses. I had no idea I was gonna have to file 3 months later though.

[lindas13]

Whatever works for your family and budget thats great. It s better to stay out of debt so emergency comes up like a job loss or anything that affects you income you dont get wiped out again. After all you cant file again no matter what happens for 8 more years so after Bankrupty better think twice about taking on debt that we dont really need. I know I am going to change my ways so I dont have to go thru this again because its very stressful

[Bigfoot]

Maybe I'm wrong

I guess the way I see this whole thing is I'm a residual victim of bad business politics. I tried to keep my business afloat and made sure I produced a good product at a fair price, yet I couldn't compete with cheap, backdoor labor. Now because my business failed and building has slowed, I have to go down with my business. I currently have a 760 score and have never been late on any payments. I have gone back to the corporate world and have a steady job,...but if I have to start swimming, I want a life vest because swimming for the next 8 years won't be easy. If I have a new/newer vehicle, that will be one less thing I have to worry about as I try to rebuild my life. I applaud those of you that are willing to rebuild your lives with a screw driver & a hammer, but if I can have a complete cordless tool set, than I would rather rebuild with better tools. Maybe I'm wrong..................

[youngnbroke]

Love the analogy!! But its totally your decision...if you would feel more confident going into all this with a new vehicle...then so be it. I thought the same way...i thought we'd be screwed for the next FEW years and wasn't sure how long our car would last (plus..between me and my husband, we only have 1 car) so i thought for sure it would be our best bet that we try to get a new one prior to filing. But after speaking with our attorney, he assured us that if we played an active part in rebuilding our credit, we could get the same rates as others in a couple of years. So I'd say if you dont think your car will last another 2-3 years, then it might be wise to just get a new one, but otherwise, try to stick it out. Save money for the next new vehicle!

[sobeit]

I financed a lightly used (4 years old, 40K miles) Toyota last Friday, and plan to file for Chapter 7 in August. I have spoken to two attorneys that found no problem with this, especially since the car I was driving, while paid in full, was 15 years old, I had sunk 2K into it last year, and it needed another 1K of repairs. It took me awhile to wrap my head around this, thinking it was not the right thing to do, but honestly, I need a reliable car to get to and from my job. Like others here have said, it's good planning. I think if you avoid anything luxurious or that per the means test would put you in a significantly negative DMI, you're OK.