buy car before or after filing

[joemuni]

I need to file for bankruptcy for credit card debt, as soon as possible. But I need to have a car for basic transportation.
Can I use a cash advance that I took a few months ago? How much can I spend, since the Federal exempt is $2,400, and State of New Jersey has no exemption for autos. Can I take a car loan, before or after filing , if I don't have enough money, with my poor credit report.
Will they repossess the car when the case comes before the Court in a few months.

 

[Ladynred]

You need to post what state you're in, its in the 'rules' and it will help the legal eagles here answer your questions better.

 

[gottago]

Here's what a lot of people do:

Before you file, go out and get a reasonable car. Purchase it with a loan, and put the least amount possible down when you buy it.

When you file, the only part of the car that will not be exempt is the portion of its value that exceeds the loan value. However, since you'll have just purchased it, and didn't put much down, you won't have much/any equity in the car.

Remember, this is the last decent car loan you'll be able to get for at least three years, so choose carefully and make sure that the payments are affordable and that the interest rate isn't sky high, since you'll need to make those payments ON TIME for the duration of the loan.

As for the cash advance money... Whatever portion you don't use for the downpayment, you can probably hold onto and use your exemption to keep it. Or, just keep it in cash under your mattress... I won't tell the trustee about it if you don't

 

[joemuni]

To gottago:

I cannot get a car loan because I,m months past due on credit card payments, and have a poor credit report rating, and am not working.

As I explained in other Post, using all of bank savings for car or cash withdraw, and then quickly filing may be a problem.

Can you say what I should do.

Can I use wildcard of $7,500 for car, lawyer expense, and money I will need for personal expenses.


Thanks for your comments.