"Luxury" Vehicles

[Txdebt]

Hypothetically, I have been told that my income is too high for chapter 7 unless I purchase a second vehicle. I was told if I had another expense of $600 I would qualify for Chapter 7, and that a second vehicle for my spouse is an allowable expense.

I was advised that the trustee does not want to see a "luxury" vehicle brand and that may affect my Chapter 7.

My husband would much prefer to drive a 3 year old BMW with a Carmax warranty over a this model year Camry. If we went with the BMW does anyone else think this would affect my Chapter 7? I mean what could the trustee do? Make me trade it in for a loss and get a new vehicle? I doubt it.

[LadyInTheRed]

Hypothetically,

It is pretty pointless to talk about hypotheticals. Had an attorney told you that you need a $600 expenses to qualify for a Chap 7 and advised you to buy a second vehicle?

I mean what could the trustee do? Make me trade it in for a loss and get a new vehicle? I doubt it.

He could object to a Chap 7 discharge and force you to (1) try to convince a judge that you should be allowed to make payments on a BMW while your creditors get nothing, (2) let your case get dismissed or (3) convert to a Chap 13 in which case the Chap 13 trustee may object to the expense for purposes of determining your plan payment.

You are bankrupt. Your husband should adjust his expectations. A luxury vehicle is often seen as a red flag. Your high income is already a red flag. Do you really need another?

[Txdebt]

It is pretty pointless to talk about hypotheticals. Had an attorney told you that you need a $600 expenses to qualify for a Chap 7 and advised you to buy a second vehicle?



He could object to a Chap 7 discharge and force you to (1) try to convince a judge that you should be allowed to make payments on a BMW while your creditors get nothing, (2) let your case get dismissed or (3) convert to a Chap 13 in which case the Chap 13 trustee may object to the expense for purposes of determining your plan payment.

You are bankrupt. Your husband should adjust his expectations. A luxury vehicle is often seen as a red flag. Your high income is already a red flag. Do you really need another?

I agree on passing on a luxury vehicle and we have already come to the conclusion to pass on it.

I don't know that my attorney is allowed to advise me to buy a car, but he made it clear I would not qualify for Chapter 7 with one car.

[LadyInTheRed]

I don't know that my attorney is allowed to advise me to buy a car, but he made it clear I would not qualify for Chapter 7 with one car.

It sounds like he is telling you that you should by a car. I suggest you decide what kind of car to buy and then call him, remind him of what he said to you about a car payment and say "I am considering buying a [whatever year and make of car] for $______ and a payment of $_________ per month. How would that affect my bankruptcy filing? Is the trustee likely to object to that size of a payment."

But, only buy a car if you will be able to afford the payment after your unsecured debt is discharged.