anyone ever financed before 341 meeting?

[Bobbi]

I am looking at buying a car outright, just a junker, until we get our score back up. Prestige Financial(lone zone) works thru a ton of dealers here, and i applied last week, just to see if i could get financed, in case we can't find something. Well, a dealer called today, and he said I dont have to wait for my 341 when it is thru a preferred dealer. Not sure if anyone else has had this situation?

[Minnymouth]

Since you have already filed and in the bankruptcy process---- YOU NEED PERMISSION FROM THE TRUSTEE to take on any kind of debt during the BK process......

This means debt for any reason.....

Sooooooo, you and your attorney best be informing the Trustee of the need of a vehicle and get it approved..........

Before you get your case dismissed and your out your legal money....and fees.

[stephanie4686]

I don't think you do always need the trustees permission, particularly in a chapter 7. I do think that a chapter 13 is a little different though.

[Bobbi]

hmmm, i am prose, so no lawyer. I will call tomorrow.....and ask the trustee. I am going to hunt for the law on that....

[CATCHMEIFYOUCAN]

If you haven't had your 341 meeting than I would think you could go ahead and finance a car, you would have re-submit some of the paperwork as it would affect your disposable income.

I had bought a new car just before my 341 and it affected my disposable income to a certain degree (well $400 less going to the trustee), I also had to show I made at least 1 if not 2 payments on the new loan. I was filing Ch13 at the time.

Catchmeifyoucan

[HHM]

This is a no brainer folks, YOU CANNOT ACQUIRE NEW DEBT DURING AN OPEN CHAPTER 7 BK.

(some people do so, but realize, you are committing fraud by doing so. The only time you can acquire new debt is if you are doing a 722 redemption loan).

[Minnymouth]

HELLO HHM................GUESS they didn't read my lips, did they??

I know that during a Chapter 13, nothing is done without the approval of the Trustee.......

I also know that during a Chapter 7 you are not supposed to take on any more debt but sometimes the Trustee will approve it if necessarily needed (such as an auto)....

Thanks for re-enforcing the issue............

YOUR THE MAN!!!!

Minny

[stephanie4686]

It must vary by state. I have an open chapter 7 and I keep getting mailers from car dealer saying that I can get a loan "Open chapter 7 is okay!". Obviously, they do want my business, but I can't see all the dealers sending everyone mailers that tell people outright to commit fraud. I will ask my atty and post back. I live in GA by the way.

[krielly]

It must vary by state. I have an open chapter 7 and I keep getting mailers from car dealer saying that I can get a loan "Open chapter 7 is okay!". Obviously, they do want my business, but I can't see all the dealers sending everyone mailers that tell people outright to commit fraud. I will ask my atty and post back. I live in GA by the way.

We're in an open 13, and constantly get pre-approval offers from credit cards, and offers from the lenders you describe as well.

These lenders however are NOT in charge of your BK. Sure "open 7" or sometimes 13 is OK (WITH THEM), but they don't make the laws, and would more than likely require permission from your trustee before actually loaning you the funds.

Again, just because it is "ok" with them, does not mean it's "ok" for your BK!!!!!

Far better to get permission, than to risk dismissal of your case!!!! Worst case scenario, you have to wait till your 7 is discharged. Once it is, there are many lenders who will work with you. Not worth the risk of dismissal for sure!

[Bobbi]

HELLO HHM................GUESS they didn't read my lips, did they??

I know that during a Chapter 13, nothing is done without the approval of the Trustee.......

I also know that during a Chapter 7 you are not supposed to take on any more debt but sometimes the Trustee will approve it if necessarily needed (such as an auto)....

Thanks for re-enforcing the issue............

YOUR THE MAN!!!!

Minny

wow, that was really, really RUDE.



As for the situation, YES, it is OK to purchase a vehicle in an open chapter 7. Especially when your old creditor is planning to get a lift of stay, and you have a reason. My trustee spoke with a rep from the bank about an hour ago.

Thanks to everyone else who replied. I appreciate it.

[stephanie4686]

Thanks Bobbi it's good to know. What state are you in by the way?
I had the same issue with my student loans since for the new semester, but it ended up being okay.

[Bobbi]

Thanks Bobbi it's good to know. What state are you in by the way?
I had the same issue with my student loans since for the new semester, but it ended up being okay.

i am in texas i filed prose, so i am learning as i go!