Need car before filing

[spearmint]

I am driving a 15-year old car - had it since it was new (better days for me then.) I need to replace it but I am wondering what is the best way to do this - before or after filing.

Also, who is likely to give me a loan with terrible credit - and how much downpayment?

[Drazil65]

Hi, I personally would wait until after discharge if you are filing chp 7. That way you will have less equity (assets) if you wait. Also, just an FYI, once you get your discharge (or right before as in our case) you will start receiving offers in the mail (several a week for us) to purchase a vehicle with local dealers. They all know about the discharge and the offers say they work with bky cases and help rebuild credit. Our offers have been with many reputable dealers in our area and some outside our area that we have never heard of. Good Luck!

[tripbuddy]

Ask your attorney. They know the trustees in the area, and can help you prevent major mistakes! Our atty knew we could get a car loan with certain loan companies, without trouble. As long as we didn't get ridiculous or put too much down (that would result in too much equity). She even helped us time it properly, so the lien would be perfected before we filed.

I'd not advise anyone looking to file bk7 to run out and finance a new car, but I'd advise that you let your attorney advise you.

[spearmint]

I will ask my attorney next week what he thinks about changing my car. I am considering leasing one so I don't have to put money down (or at least put less down than if I were to buy one) but I am afraid that might be taken away in a BK.

[keepsmiling]

I will ask my attorney next week what he thinks about changing my car. I am considering leasing one so I don't have to put money down (or at least put less down than if I were to buy one) but I am afraid that might be taken away in a BK.

That shouldn't be a problem since you won't have any equity