Buying a car with large down payment prior to filing

[Nick9075]

Basically I am looking to buy a decent preowned car prior to filing. The only way I can qualify for ANY type of financing is to put close to 50% of purchase price, take a rate of about 20% and refinance 6 months into the loan.

Prices have skyrocketed as least from what I have seen around the Boston area. Dealers won't even move on the listed price either.

So with sales tax of 6.25% in Mass plus registration fees I am looking at the total cost of about $20,000 for a decent preowned Honda Accord or Nissan Maxima.

Will putting $10,000 down and 'switching' the payments I am making toward BoA credit card which is hardly moving down at 19.99% to the car payment raise a red flag assuming the filing is done around 6 months from now?? Likely given all the scenarios I will likely be pushed to a chapter 13.
I would rather get the car purchase out of the way now since it will be an impossibility if & when I file.

[keepmine]

Careful here.
If you put $10K down on a car, you will have far more equity than your state exempts.

Give the Cap1 Blank check program a try.

http://www.capitalone.com/autoloans/blank-check/index.php

[Nick9075]

Careful here.
If you put $10K down on a car, you will have far more equity than your state exempts.

Give the Cap1 Blank check program a try.

http://www.capitalone.com/autoloans/...heck/index.php

Neither Capital One or Roadloans will approve me. Applied multiple times & denied for every program they offer at any rate.

I make $75,000 a year (which I know is 'nothing' in the Boston area where the cost of living is substantially higher than the NYC metro area) but I should be able to get approved for something don't you think?? I am from a middle class family which is rare here so I don't have the luxury of having parents cosign for cars & apartments like everyone else under age 30 has

I am pulling $10,000 from my investments which are up 40% this year which will be the down payment for a 2006 Nissan Maxima with just under 30,000 miles. With sales tax + doc fees total cost will be just above $20,000.

I will do a chapter 13 but only when I am forced into it meaning that a creditor intends to get a judgement against me.

Until then, I am aggressively hoarding cash (for one to get the HELL out of this state) and trying to get things done that I may not be able to once I leave this state & when I file for BK such as buying a car and taking care of medical and dental needs while I still have medical insurance.

[pcn]

Along with what keepmine said - If you have equity in the vehicle, wont that raise the amount you have to pay in a 13. At least you wont lose it as in a ch7, but as I understand it, in a ch13, the creditors are allowed the equivalent of what they would get in a 7. So that equity goes into the "pot" and you get to pay it again to the creditors. Would it be better to wait and use the cash for a vehicle after you file? maybe not as expensive, and pay all cash? Why not wait to pull it from your investments, (assuming they are protected)? Won't you pay taxes on the withdrawal? And won't the withdrawal increase your income for the 6 month period?

[sigferl]

Thanks for your post N9. If you do not mind me asking, why are you buying such a expensive car if you are short on money? Try looking for chevy cavalier or dodge neon, they are much cheaper and about the same size.

PS. Thank your parents for NOT giving you things/money. Mine did not and I thank them every day for teaching me hard work and frugal living.

Freedom is not free.

Neither Capital One or Roadloans will approve me. Applied multiple times & denied for every program they offer at any rate.

I make $75,000 a year (which I know is 'nothing' in the Boston area where the cost of living is substantially higher than the NYC metro area) but I should be able to get approved for something don't you think?? I am from a middle class family which is rare here so I don't have the luxury of having parents cosign for cars & apartments like everyone else under age 30 has

I am pulling $10,000 from my investments which are up 40% this year which will be the down payment for a 2006 Nissan Maxima with just under 30,000 miles. With sales tax + doc fees total cost will be just above $20,000.

I will do a chapter 13 but only when I am forced into it meaning that a creditor intends to get a judgement against me.

Until then, I am aggressively hoarding cash (for one to get the HELL out of this state) and trying to get things done that I may not be able to once I leave this state & when I file for BK such as buying a car and taking care of medical and dental needs while I still have medical insurance.

[nc73]

Cuz he's an idiot. A 10k car is GREAT. 20K is way too much if you are in debt.