I have questions about the logistics of buying a car before filing. Specifically, what to do with the vehicle I would want to sell or trade-in. My situation is as follows. My income is exempt. My house has no equity, let alone nonexempt equity. (My mortgage is subsidized and that subsidy has to be repaid as a secured interest. The subsidy exceeds what I have paid down on my mortgage.) My personal property is within my exemption. I'm thinking Ch. 7 and with SS as my income, as I understand it, qualify. I've had astronomical out of pocket medical bills the last 2+ years and ended up putting too much on credit cards with zero interest, not realizing the huge mess I had gotten myself into.
I will need a reliable vehicle that doesn't need big repairs. My old car is getting enough mileage it will need repairs soon, though it's doing great now at 144,000. If I trade-in my car, I understand I probably won't get offered much for it, though it will take down the total price. If I sell my old car after getting a new one before filing, I'd like to apply the money to the car loan. But wouldn't that be a preferential payment? I don't think I have enough personal property exemption to cover all of the proceeds if I simply put the cash in the bank.
How have people handled that?
Thank you so much!
I will need a reliable vehicle that doesn't need big repairs. My old car is getting enough mileage it will need repairs soon, though it's doing great now at 144,000. If I trade-in my car, I understand I probably won't get offered much for it, though it will take down the total price. If I sell my old car after getting a new one before filing, I'd like to apply the money to the car loan. But wouldn't that be a preferential payment? I don't think I have enough personal property exemption to cover all of the proceeds if I simply put the cash in the bank.
How have people handled that?
Thank you so much!
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