Is it ok to buy a new car 3-6 months before filing??

[Nightowl805]

The car I have now is salvaged with over 100k miles on it...just trying to plan ahead

[CATCHMEIFYOUCAN]

I bought a car 1 month before I filed. The previous car I owned had 140,000 miles on it (Honda Accord/4dr Sedan), it got flooded in front of the casino I was at (OF ALL PLACES!). The insurance company didn't total the thing as I expected. I had no car payments on it (well I was paying for it through my 401k plan). I called my lawyer and he said just take the money they are willing to give you (which was $1700 for a new engine) and get yourself into a new car BEFORE you file. I hopped into a plain HYUNDAI SONATA (and I love that car over my HONDA, believe it or not!). At my 341 meeting I just had to prove 1-2 payments. You should be fine!

Catchmeifyoucan

[cool33097]

Yes you can, I also did. Just dont put to much money down....remember...no equity.

[sharksfan]

I bought one 31 days before filing. My wife bought another a week later.

[cj0203]

Our lawyer told us it was fine, as we are surrendering one of the cars we own due to massive engine damage. We bought a $6K used Explorer. LOVE IT.

[needafreshstart]

I was told by a lawyer that she has had clients come directly from a dealership after buying a car to file bk.

[danaf]

I did - last summer. 6.5 interest rate. I will reaffirm the car. It will last me.

[PaKettle]

Not only can you buy a car before filing but as long as you don't put too much down it will probably help your bankruptcy, if you end up having a larger monthly car payment than you had before. You will also probably get a better rate than you'd get after bankruptcy, and it's good to have a reliable car as you "get back on your feet" financially. Just don't strap yourself with a big monthly payment, keep it reasonable; don't buy a Lexus or something, keep it simple and reliable (and not a gas guzzler!).(Now, if you already have a good car, I would not necessarily go buy a new one just to qualify for bankruptcy; but if your car is old and you can "justify" buying a new one based on wanting a more reliable car, then I'd do it.

Most of the financial experts say it's best to buy a 2-5 year old car; otherwise you are paying too much for just having a "new car". If you live in a big city and really rely on your car a lot, I personally would go ahead and buy a new one and get the bumper-to-bumper service warranty too (but talk them down to about $900 for it for 5 years).

[movingon]

As stated above me, car loan also assisted me in my BK. After calculating my schedules, I needed a $500 car payment to get me in the clear for the means test and my schedules. I ended up with a $575, didn't get questioned a peep during the entire process, then promptly returned the vehicle after my BK was closed. It saved me from a ch13...