I give up. I don't know what to do.

[AngelinaCat]

I should think you would be able to do that.

I/we do not have that type of experience, although we should have, because we had damage to the house from the 2004 hurricanes that came through Florida. Instead, we were dealing with the aftermath of prostate cancer, other medical issues, and stupid frivolous lawsuits from an Enemy, that decided that he was going to 'get' us.

[Foofy610]

I'm very sorry you had to go through that.

[ValleYum]

60 months is what we used.

Sorry, I was writing a letter to a creditor to correct my credit report entry and just now saw this.

Can you afford newer cars? If you are filing a 13, your maintenance costs will give you fits with your budget. And - NOT being mean or ugly - if you can afford to make a Chapter 13 payment how can you not use the same money to make a car payment? Or am I being too logical here?

[Foofy610]

It's really funny. Everyone keeps suggesting we buy cars. We have no money for down payments, and we so overextended we'll never get a loan. If you know a way, I'm all ears. :-)

Also, if we're filing next week, how do we justify taking on new debt? Am I missing something?

[momofthree]

Look at it this way, Foofy.Let's say you're going to be in a ch.13 and have a $600 trustee payment (just pulling a number out of absolutely no where). Your payment will be the same whether you have a new car or not. For example, if you keep your current vehicles, then all $600 will go towards your unsecured creditors (minus attny fees & tt fees of course). If you have a new vehicle, then the payment will go towards your auto loan, and whatever is left over goes to your unsecured creditors (again, minus attny & tt fees). Your payment is the same either way....that is why everyone suggests buying at least 1 new car that will get you thru the next 5 years without needing a major repair.

There are buy here, pay here places that will finance just about anyone. Don't worry about the interest rate b/c when you file, the courts will knock the rate down to the current "till rate" which is usually around 5-6 percent.

Further, if you're going to end up in a ch.13, why the rush to file? Put it off and save up some money first, IMO. Speak to your attorney about all of this and get his opinion in the matter....

[karm43]

What happens if your car dies? Is what everyone is saying, its harder to get a loan and you need permission. The car would be a secure loan, Plus you would get the expense credit too.

[karm43]

Does your car have to be included in chap13 to get the cheaper interest rate? Or can you pay it outside the plan? Anyone know?

[Foofy610]

Karm... I've got to be missing something here. If I buy a car today, wouldn't the creditor have to be included in the bankruptcy? Also, how long would I have to wait to file after the purchase?

Believe me, I'm a fairly intelligent man, but I'm having trouble grasping this issue.

[ValleYum]

Foofy:

Yes, if you bought a car today the creditor would have to be included in the bankruptcy. It would be a secured debt. Most state/county recording offices have time limits for the title to be filed correctly with the lien perfected and that would be the amount of time you'd need to wait to file your BK, AFAIK. Call your attorney - she sounded pretty on the ball from what you said of your meeting with her - right? Run the scenario(s) past her and see what her thoughts are.

Google: perfection of lien or security interest in vehicle in regards to bankruptcy

Also search it here on the forums. One forum member got a title loan on her previously paid off vehicle that helped her pass her means test and get her Chapter 7 filed. HEre is that thread: http://www.bkforum.com/showthread.ph...led-Means-test Long read but worth it for the info.

Also, if you end up able to buy a new car, make sure your payment doesn't exceed $496 per month if possible as that is all you can "claim" on your means test

Anyone else got anything for Foofy? Bueller? Bueller?

[momofthree]

Does your car have to be included in chap13 to get the cheaper interest rate? Or can you pay it outside the plan? Anyone know?

I'm pretty sure that it would have to be paid thru the plan. Good question for your attorney.

[momofthree]

Karm... I've got to be missing something here. If I buy a car today, wouldn't the creditor have to be included in the bankruptcy? Also, how long would I have to wait to file after the purchase?

Believe me, I'm a fairly intelligent man, but I'm having trouble grasping this issue.

The creditor would have to be included in the bk, but it would be a secured loan and would have to be paid back at 100%, so it's not considered fraudulent, or even frowned upon to purchase a newer vehicle just before filing. Usually it's just considered good bk planning.

[keepsmiling]

Believe me, I'm a fairly intelligent man, but I'm having trouble grasping this issue.

Foofy, I know it's hard to digest the idea of buying a new car right now.
Don't try to think of it as logical. Many things in Bk are not, on the surface. Keep reading and you will see what I mean.
Trust me, these people know what they are talking about. Your lawyer may not make this suggestion as it's sort of verboten for him/her to do that.

[Foofy610]

Thanks to everyone hammering information into my thick skull... I'm relatively comfortable with the idea of buying a car. My only issue now is how long we have to wait to file. The credit card companies are starting to get restless!! Also, will there be any backlash when we do file? I'm guessing the trustee will say something like... "you just bought a car a month ago, now you're filing for bankruptcy??"

[ValleYum]

Thanks to everyone hammering information into my thick skull... I'm relatively comfortable with the idea of buying a car. My only issue now is how long we have to wait to file. The credit card companies are starting to get restless!! Also, will there be any backlash when we do file? I'm guessing the trustee will say something like... "you just bought a car a month ago, now you're filing for bankruptcy??"

Call your attorney and pose this question. Or set up another free consult (or 4) and take a list of your questions!

[Foofy610]

Call your attorney and pose this question. Or set up another free consult (or 4) and take a list of your questions!

I am waiting for a response from my attorney. Also, we were denied the auto loan by Wells Fargo. We're over-extended. I wonder if my dealer can get me into one of his used cars? We bought my wife's car from him in 2003. Maybe he can help?