Can relative secure financing for a car for me before Chapter 7?

[sillywalks]

I have 2 vehicles, both with 185K+ miles. I am considering trading in my 2001 Camry for a new/low mileage used Toyota RAV4. Unfortunately, with a foreclosure and not paying CC's since October, my credit is really bad. A relative has offered to secure financing for the RAV4 for me. I would make the payments and pay insurance on the vehicle.

Is this feasible before I file for bankruptcy (looking to file in February)? Can I put my name on the title of a car that my relative has financed? If not, will that be a problem, if I am clearly responsible for the payments?

Because of a change in household #'s, I want the payment to be sure I don't get kicked into Ch. 13, plus my car really is high miles and getting expensive to maintain.

Thanks for any input.

[dumpinmydebt]

If you are not on the loan, I don't think you can include the payment. It's not legally your payment. The Trustee can see that you will be able to walk away with no legal obligation held against you.

I would try to see if they can co-sign (though I am personally against having relatives get loans for other relatives.)

[youngnbroke]

We got another car right before discharge..a family member got the financing for it and we will make payments (and we hold the insurance) ..as long as you are not on the title..its not legally yours, so it shouldn't affect anything with the BK

As long as you hold u hold up your end of the deal, there should be no problem. While car shopping, the salesman said we should NOT be on the loan because of our bad credit, it will make the interest sky high!!

[21bwife]

Wow! I can actually answer a question on here! I have two vehicles.. A 2007 Elantra and a 2010 Traverse. Both are titled in my mother in laws name and financed in her name. We listed them on our petition. Trustee said nothing about them. We are about 30 days past our 341 meeting and have recieved a report of no distrubution. I paid the payments and insurance out of my bank account so there was proof. Also, the Traverse was purchased in July of 2010 and we filed in October 0f 2010. I think it will be fine. I will update you in 30 days when I'm doing the discharge happy dance :-)

[sillywalks]

That's a good point -- I don't think I CAN get a loan in my name right now, even with a co-signer! It's good to know it worked for you, though...more hope for me!

[sillywalks]

That is great to hear 21bwife! Looks like I should be in the clear, then (assuming I can find a car!).