Buy Car Before, During or After BK?

[HorseyMom]

Ok, here is the situation...

DH and I are filing Ch. 7 if we can get an auto equity loan (posted about it in another thread). If not, we will have to file Ch. 13.

We are needing to replace one vehicle that is 22 yrs old. and I keep wondering if it would be better to buy a car (used, around $10k) before we file? It won't be that big of a deal to wait, if we're able to file Ch. 7. But, we don't want to be stuck for 3-5 yrs and not be able to purchase one while in Ch. 13. I understand it has to be ok'd with the Trustee, just wondering how difficult that is? Are lenders going to even look at us while in Ch. 13?

I already questioned the legal assistant about it and she said as long as we have no equity in the vehicle it will be safe. Our vehicle exemption is already going to our truck.

What is the best move here?

[SMinGA2]

Buying a car during ch. 13 can be tough. You need the trustee's permission to get financing, and then you'd possibly have to modify your plan because your DMI would change with the additional payment. I'm not saying it can't be done, but IMO if you're going into a ch. 13 you should have transportation that will last 3+ years.

[HorseyMom]

Thank you. It's looking like we might be heading for Ch. 13. Our bank denied us a loan so we applied with the CU and they are basically wanting our life story, not real confident they will give us a loan either.

Now, hopefully we can get approved for a used car!