Financing a car Before filing chapter 7

[Purpleroyalty68]

What is the name of your state? TN
I am considering filing chapter 7. I have 80k in credit card debt and a $730 car payment that has 22 payments remaining. The car is a 2016 and was in really good shape until vandals put sugar in my gas tank making the car inoperable. I need a car ASAP. My question is can I finance a car shortly before filing chapt 7 bankruptcy? I intend to reaffirm the new loan. I need a car for work and I can’t wait until I receive a discharge.

 

[NeilTheCop]

You are $80K in credit card debt and you still owe $16K on a car.
Try and get another car financed before you go any further because it may be somewhere between very difficult and impossible with your track record.

 

[Zigner]

What is the name of your state? TN
I am considering filing chapter 7. I have 80k in credit card debt and a $730 car payment that has 22 payments remaining. The car is a 2016 and was in really good shape until vandals put sugar in my gas tank making the car inoperable. I need a car ASAP. My question is can I finance a car shortly before filing chapt 7 bankruptcy? I intend to reaffirm the new loan. I need a car for work and I can’t wait until I receive a discharge.

Why didn't/don't you file a claim against your insurance to have your car repaired?

 

[Purpleroyalty68]

Insurance said it was mechanical issue. I was out of town caring for a sick relative. Car was parked. When I got back the car wouldn’t start mechanic said it was foreign substance looked like sugar but anyways the entire fuel system needs to be replaced possibly parts of the engine. The insurance company refused to cover it because we don’t know what the foreign substance is and when it happened. Repair totals $4000 . So I don’t want to put 4K that I am going to return in a few months.

 

[Purpleroyalty68]

You are $80K in credit card debt and you still owe $16K on a car.
Try and get another car financed before you go any further because it may be somewhere between very difficult and impossible with your track record.

My track record??? I have never been late on any payments for anything and currently have a FICO score of 750 which isn’t too bad!

 

[Zigner]

My track record??? I have never been late on any payments for anything and currently have a FICO score of 750 which isn’t too bad!

If you are currently paying and have the ability to continue paying your bills, then why do you feel that bankruptcy would be appropriate, particularly Chapter 7?

 

[Purpleroyalty68]

I have taken on the responsibility of my recently deceased sister’s 3 minor children one of which is special needs. They came with absolutely nothing, I had to purchase beds clothing EVERYTHING. Plus medical expenses. Thus the higher than usual credit card debt! It is getting increasingly hard to pay the minimum on the credit cards which is about 2000 a month. I make 78k a year.

 

[Zigner]

I have taken on the responsibility of my recently deceased sister’s 3 minor children one of which is special needs. They came with absolutely nothing, I had to purchase beds clothing EVERYTHING. Plus medical expenses. Thus the higher than usual credit card debt! It is getting increasingly hard to pay the minimum on the credit cards which is about 2000 a month. I make 78k a year.

Gotcha - but again, I'm not sure that Ch 7 is appropriate. It sounds like a Ch 13 may be more appropriate. Even if you start with Ch 7, it may be converted to a Ch 13.

 

[Purpleroyalty68]

Ok. Why do you feel chapter 13 is more appropriate? My income for my family size of 4 is just slightly above the median for my state but I easily qualify after the means test.

 

[NeilTheCop]

My track record??? I have never been late on any payments for anything and currently have a FICO score of 750 which isn’t too bad!

My apologies, no insult was intended.
But if you are in credit card debt to the tune of $80K already many finance companies will hold that against you if you want another car loan to add to the one you have already.

 

[Purpleroyalty68]

Oh , I’m sorry . Thanks for your help! You are correct never thought about it that way!

 

[Pinkie39]

Not bankruptcy related but...

Have you checked with the Social Security Administration to see if the children qualify for survivor's benefits on their mother's record, if she had been employed?

Also check with your county department of human services. You may qualify for some kind of kinship care assistance for the children.

 

[Purpleroyalty68]

No I haven’t. I never thought about that because my sister never worked.

 

[Just Blue]

No I haven’t. I never thought about that because my sister never worked.

Are you receiving chid support from the father(s) of these children? If not...Why?

 

[LdiJ]

No I haven’t. I never thought about that because my sister never worked.

If she never worked, then she wouldn't have had the necessary 40 works credits for them to qualify for SS survivor's benefits. However its possible that the special needs child would qualify for SSI, so that is something that you might explore.