Getting Financed for New Car Before Filing....

[deadbroke99]

I wish I had done this before I quit paying everything in December. I just thought it would look bad to get a new car and not pay what I already owe. I should have read this board before then.

[landofpoor]

No personal attacks here but what is the difference of buying a new set of wheels and that flys.But a person mentions large cash advances within same time frame oh oh thats fraud you know.
I really dont think theres many here that hadnt seen the writing on the wall for a good year or two.But theres seems to be lot of goodytwoshoes

[DebtStinks]

There is no fraud involved if your intention is to payback the loan. We bought our car and intend to keep it though bankruptcy (reaffirm if they will let us). BUT if you go out and by a hot rod with no intention of keeping it to just having a fun ride for a few months while in bankrupt then you are committing fraud.

There is nothing wrong with large cash advances if you can document where the money went and it was for allowed purchases. But if you take money out to pay off friends and family, or to hide assets, then that is fraud.

It's all about your intention.

[landofpoor]

There is no fraud involved if your intention is to payback the loan. We bought our car and intend to keep it though bankruptcy (reaffirm if they will let us). BUT if you go out and by a hot rod with no intention of keeping it to just having a fun ride for a few months while in bankrupt then you are committing fraud.

There is nothing wrong with large cash advances if you can document where the money went and it was for allowed purchases. But if you take money out to pay off friends and family, or to hide assets, then that is fraud.

It's all about your intention.

true its all bout intention.But if a person is already banktrupt why is a new set of wheels allowed to have pyments made on say for 5 yrs give or take.Because if no set of new wheels that payment would be going towards cc payoff.Yeah intention of paying loan back for a set of wheels that is still a assett in the end.I love instead of advances well I will just buy a new car and belly up on the ccards and thats legal. Seen it time after time on here hurry up get set of new wheels before they file and thats aok

[DebtStinks]

I can see what you are saying... and a lot of it is the side effect of poorly written bankruptcy laws. But the purchase of a car on the "eve" of bankruptcy doesn't take much from your current creditors. I dont' think our first payment is even due until after we plan to file. But again large cash advances are going to get extra scrutiny becase that is money that could be going to your creditors.

[gettingby2008]

We were advised to get a new or used car that would last throughout our 5 year chapter 13 plan. We already were making lease payment however we would have been done paying and turned the lease in during our plan. Trying to get a new vehicle while in an active plan is difficult. We are a 2 person working household and need transportation to and from work, without going to work we cannot pay our plan payment. Most people need a vehicle unless you live in a city with incredible public transportation and even public transportation is an allowable expense in bankruptcy!!!

For some of us turning in a leased vehicle and purchasing a different car actually freed up addtl $ to be paid to creditors. Purchasing a new car is not FRAUD it is just part of good bankruptcy planning and is allowed by the court.

Judging people will get you know where, especially when you do not have all the facts. Everyone's situation is unique, but we are all on this forum for a reason.l

[landofpoor]

We were advised to get a new or used car that would last throughout our 5 year chapter 13 plan. We already were making lease payment however we would have been done paying and turned the lease in during our plan. Trying to get a new vehicle while in an active plan is difficult. We are a 2 person working household and need transportation to and from work, without going to work we cannot pay our plan payment. Most people need a vehicle unless you live in a city with incredible public transportation and even public transportation is an allowable expense in bankruptcy!!!

For some of us turning in a leased vehicle and purchasing a different car actually freed up addtl $ to be paid to creditors. Purchasing a new car is not FRAUD it is just part of good bankruptcy planning and is allowed by the court.

Judging people will get you know where, especially when you do not have all the facts. Everyone's situation is unique, but we are all on this forum for a reason.l

true well spoken

[dogbone33]

Wish I would have gotten a new truck before we filed. There was a lot we should have done, but really didn't think we were ever going to file bk. Dang it!

[relief13035]

We bought our almost new (barely used) car 6 months prior to filing and received 4.9% financing for 60 months. We had no intention of filing back then.

I think pre-bankruptcy planning though is something everyone should do.

[spearmint]

We bought our almost new (barely used) car 6 months prior to filing and received 4.9% financing for 60 months. We had no intention of filing back then.

I think pre-bankruptcy planning though is something everyone should do.

Good for you! What sort of interest rate did you get and was your credit score good or bad at the time?