New Car questions?

[Mark80]

Currently I have two cars, one newer that we still owe 4 years on and one old thats about to die. My credit is in a downward spiral now that the 30 day lates are starting to show up. I'm wondering what people do in my situation when you know your going to need another car over the next year, but your on the brink of your filing?

Are you allowed to have two car loans during bankruptcy? (I am married thats why I need two) Should I run out and just try and get something cheap and dependable now before I pull the trigger? (I kind of doubt I can though with my credit) Or is there a possibility of a loan after a year into chapter 13?

And has anyone used any online auto loan places that deal with bad credit or bankruptcy folk?

Thanks!

I found the entire forum dedicated to this right after I posted! But I still not find an answer to my question, mainly can a household of 2 adults have 2 car loans going into chapter 13, thanks!

[AngelinaCatHub]

Yes you can as a car is a tool of your trade. If you can't get to work by Public access you need a good used car. NOT NEW, then you will have to explain and you don't want to appear fraudulent. What is wrong with the "dying" car? Two car payments worth of money can usually fix most things. ‘Hub

[Mark80]

Well my transmission is going out, its slipping and overdrive no longer engages. I had it checked out by a few local shops and both estimated around 1500 for a rebuilt, 3000 for new replacement. My powersteering is also shot, the assembly needs replaced, hoses and pump as it keeps leaking. Repair cost for that around 600 including parts. So to fix the steering and transmission I need about 2100 if the tranny can be rebuilt. The car also is knocking bad, burns oil, leaks oil and needs a muffler.

I dumped 3k into repairs over the last 2 years, and even did most myself a few months ago when it failed emissions and the safety inspection. But its draining me, and I don't see it making it 5 more years, expecially with it at 150,000 miles and me putting around 20k miles a day to get to work and back.

I was hoping to pick up a cheap new car with a full warrenty so I'm covered. But I guess thats a big no in my situation.

I was combing over the means test on the auto area and noticed something that kind of confused me,

Vehicle Ownership or
Lease Expense
Select the number of vehicles for which you claim an ownership or lease expense. (You may not claim an ownership/lease expense for more than two vehicles.)

I own 2 cars, 1 new, and one old, can I put 1 or 2 down for that if the second old car doesn't have a monthly loan payment?

Thanks!

[Mark80]

Ok so I spoke with my attorney, they advised that if I could to get a new car before filing. But like I figured I couldn't get approved. So I need to switch up my question some, what does everyone do when they are into their chapter 13 plan and their car dies with only a massive repair bill to get it on the road again? Is there anything you can do?

[Mark80]

Not to keep bumping this up, but now I am told I can be approved for a car loan but only if my wife co-signs with me. So when you have a co signer on a auto loan, and you file what happens? Obviously I am not trying to get out of the loan, but they shove it into my BK payment so the trustee gets more money?

Thanks

[mynameainttracy]

Are you and your wife filing jointly, or is it just you?

[Mark80]

Its just me!

I called them back and asked that question and they told me it didn't matter if she co-signed. That it wouldn't effect us when I filed.

Does this sound right?

I ended up approved for an auto loan, and I got the ok from my Attorney. My thinking is, and correct if im wrong,

Normal payment to trustee with 1 car 980, (thats the max disposable) when I add two car payments it drops it to 655 with 325 going to the new car payment. So I pay the same amount in the plan, but I get 325 of it (cost of loan) going to a car instead of the creditors.

Is this the right way to look at the situation?

[ThreadsSnapping]

That sounds about right. Payments to secureds first and then any crumbs left over go to the unsecureds.

TS

[Mark80]

Is this something you guys would do if given the oppertunity? I got one shot at this until I'm uneligable for loans, then its to the fishes I go.

[ThreadsSnapping]

Yes, I would make sure I had a reliable car before I filed a Ch. 13. Much easier to do it now than have to modify the plan later and have to get trustee approval. And if you think it is hard now to get a loan, it is even harder after you file.

Besides, you need to have a reliable car for the next 5 years if you are going to complete the plan, your payment will be the same anyway and this way you won't have to scramble to find the money all the time for repairs. And you will have a paid off car at the end of it all.

TS

[mynameainttracy]

I have told my car story on here already so feel free to search my posts. We bought a brand new car 2 months before filing. Right before we filed I had just stumbled on this forum and got scared about a few posts I saw about trying to get a car in a 13 and how some trustees were difficult to deal with, so we asked our attorney if getting a new car would impact our case and they said no and that it was a good idea.

[liz417]

Hi there,
Same here...we were *advised* to get a new car before we file ch 13. My was just too old and would last the duration of a 5 year plan.

Good Luck!

[Mark80]

My situation though was I had 1 good car already, but my other was about dead. I asked my attorney if it was ok to have two auto loans and file and he said yes, its no problem. With a household of 5 and a stay at home wife we have to have two reliable vehicles. Does this sound ok, I notice everyone is stating you have to have 1 reliable car.

Not to try and defend my reasoning, but with a Wife and 3 kids, 1 having to be picked up from kindegarten, and constant doctor visits and random "pick up the kids when they are sick days" I couldnt imagine living with one car?

[lrprn]

With a household of 5 and a stay at home wife we have to have two reliable vehicles. Does this sound ok, I notice everyone is stating you have to have 1 reliable car.

Mark, you are fine to have 2 cars. The vast majority of trustees are fine with a car for each licensed driver in the family. Just don't go overboard with your car purchases - no Mercedes, ok? Get two reliable cars - nothing fancy - you'll be fine.

[Mark80]

Thanks IRPRN!

We have a VW Jetta and a Saturn Vue, both very modest economic cars. Just trying to calm my jitters as we come down to the final stretch!