Bankruptcy and a new car

[KEVIN444444]

What is the name of your state?Kansas
I am getting ready to file bankruptcy. I need a new car. I have about $2500 saved up and I was going to trade in my old one and use the rest of the money for the down payment. But I have been told getting finacing right before bankruptcy is a big no-no. Can someone help me please?

[djohnson]

It will look badly for you to immediately file after making more debt for yourself when you are suppose to be in financial straits. Try buying one with that amount of money, or hold off on filing. If you can afford the new payments, then you can't be that bad off.

[chris7]

We financed a vehicle about 1.5 months before filing Ch. 7. At the time we got the car we knew we would file eventually, but were not planning to do it in the immediate future. When we had our free consultation with the lawyer he ended up talking us into filing immediately. The recent financing did not come up at our 341 meeting. I am not suggesting that you do this or that your bankruptcy trustee will not have problems with it. I'm just sharing our experience.

[djohnson]

Originally Posted by chris7

We financed a vehicle about 1.5 months before filing Ch. 7. At the time we got the car we knew we would file eventually, but were not planning to do it in the immediate future. When we had our free consultation with the lawyer he ended up talking us into filing immediately. The recent financing did not come up at our 341 meeting. I am not suggesting that you do this or that your bankruptcy trustee will not have problems with it. I'm just sharing our experience.

You were very lucky, usually anything obtained in atleast the previous 3 months will come up. Depending on how much they push it, I've seen it come up within a year.

[cinnerella]

My lawyer actually advised us to go out and obtain a new vehicle wether it be thru a lease or an actual purchase because we are surrendering the two we have(high payments we cant afford) and we do need a vehicle for work.We did this this week(got a loan and a reasonable vehicle) and plan on filing with in the next week or two.

[Ladynred]

IF you have an old car, its fairly common for lawyers to recommend you go get a more reliable, usually newer one. They know, and so does the Trustee, that its harder after filing BK. Besides, its a secured debt, if you want the car, you keep paying.

[Choices2005]

I bought a new car in November 2004 and just filed last month. My court date is actually next week. I spoke with a laywer at the end of February. My lawyer wasn't concerned about me having the car at all. If you are going to get a new car I would say wait at least 3-4 months. However, with the change in the BK laws I think you should file and worry about getting a car later. (at least that is what I would do) I have been getting all kinds of mail about (ppl offering to) financing a new car. Sure the interest might be high interest or you may have to get a used car but the key is getting around. As long as its reliable and you can get to work than that is better than nothing.

Laws are changing. To combat fraud in the BK system the USJ and the IRS were granted 1.87 billion in new funds for computer upgrades in fiscal year 11/04. Dont get caught!

T hese were in addition to the 2.34 billion upgrade in 03.

Oh i forgot which are just now becoming operational.

[Ladynred]

And what has the IRS's databases have to do with anything here ??

The bulk of the new law won't go into effect until October, until then there are only a few provisions that went into effect immediately and its mostly to do with homestead exemptions.