Financing a car before discharge

[c5vetman]

Is this a good idea? I need to get a car an I've found some lenders that will finance me before my discharge, but do I have to notify the trustee and get his approval? I'm already past the stage where the trustee has asked to be released from his duties and we should be about home free. I know I'm going to pay high rates, but anything is better than my $630 Camry payment.

Also, it seems that I would be better off getting a new car loan before my current car is reposesed. What are anyone's thoughts?

Thanks.

[AngelinaCat]

You are a Ch7 case, correct? Any new debt you accrue after you file, is permissible, but not dischargable for another 9 years. You just need to understand that it probably is not advantageous to acquire new debt so soon after filing BK and being discharged. Have you closed yet?

If you are a Ch13, you would have to get the trustee's permission to incur new debt.

Also, why can you not get a good used car w/o having to go the loan route? This, in my opinion, would be the better route to go instead of financing a new car.

[c5vetman]

You are a Ch7 case, correct? Any new debt you accrue after you file, is permissible, but not dischargable for another 9 years. You just need to understand that it probably is not advantageous to acquire new debt so soon after filing BK and being discharged. Have you closed yet?

If you are a Ch13, you would have to get the trustee's permission to incur new debt.

Also, why can you not get a good used car w/o having to go the loan route? This, in my opinion, would be the better route to go instead of financing a new car.

Well, I would love to be able to do that, but my job just relocated, so I'm going from a 12 mile round trip commute, to 80 miles, and I can't afford to buy a good used car that I can trust to make that kind of commute everyday outright. I haven't known anyone recently that has bought a used car that hasn't been stranding them on the side of the road. We have some good friends that just bought a HOnda Odyssey that was only a year or two old, and it's stranded them twice in the past month. I know any car, even new ones can do that, too, but you're running a higher risk with someone else's trouble.