DH and i are preplanning our Chapter 7 Bankruptcy. We are under median income by quite a bit. This is our first month we have stopped using our credit cards and I didn't make my payments on them either. We have never been late - EVER up until this last month (Oct). We also have 2 cars. Both we are making payments on and will continue to make payments on through this process because our family needs 2 cars.
Car number One worth about $1300 and we owe about $1100 on it. BUT in the past month or so it is falling apart on us. The drivers door won't open and now the outside door handle has come completely off. The drivers side window will not roll down. And today the check engine light came on and it is not come back on. Not to mention last month with the money I saved on not paying the credit cards I replaced the brakes and shocks. Our payments on this are $255/month at 7% intrest. We will have it payed off here in the next few months but it obviously needs quite a bit of work.
Car number two is worth about $11000 and I owe $13-$14K I think. I love this car and we just put in $1000 worth of mechanical work about a month or so ago as well. Payment on this car are $355/month at 8% intrest. Still have awhile to go to pay it off.
So going through this bankruptcy preplanning I was planning on keeping and paying both cars on time every month. But now I am questions Car Number 1. I can't afford to keep fixing this car up !! I am about to give myself a panic attack over it.
Can I buy a new car right before a bankruptcy with the intent to keep on paying for it. Is that considered fraud ? Is this even a wise idea ? Anybody have any suggestions or could point me in the right direction. Maybe you are seeing a path I haven't seen yet ?
Sorry for all the questions but just reading through what everyone is going through has already been such a big help for me.
Car number One worth about $1300 and we owe about $1100 on it. BUT in the past month or so it is falling apart on us. The drivers door won't open and now the outside door handle has come completely off. The drivers side window will not roll down. And today the check engine light came on and it is not come back on. Not to mention last month with the money I saved on not paying the credit cards I replaced the brakes and shocks. Our payments on this are $255/month at 7% intrest. We will have it payed off here in the next few months but it obviously needs quite a bit of work.
Car number two is worth about $11000 and I owe $13-$14K I think. I love this car and we just put in $1000 worth of mechanical work about a month or so ago as well. Payment on this car are $355/month at 8% intrest. Still have awhile to go to pay it off.
So going through this bankruptcy preplanning I was planning on keeping and paying both cars on time every month. But now I am questions Car Number 1. I can't afford to keep fixing this car up !! I am about to give myself a panic attack over it.
Can I buy a new car right before a bankruptcy with the intent to keep on paying for it. Is that considered fraud ? Is this even a wise idea ? Anybody have any suggestions or could point me in the right direction. Maybe you are seeing a path I haven't seen yet ?
Sorry for all the questions but just reading through what everyone is going through has already been such a big help for me.
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