Car questions

[Runnin on empty]

As most of you know, we have retained a lawyer and plan on filing sometime between Sep-Nov. After much discussion and advice from our lawyer, we have decided to replace both of our vehicles. My wife has already went ahead and taken out a 3-year lease on a new inexpensive 4-door car. I'm not all that jazzed on the idea of leasing, but I wonder if a lease would look better to the trustee than an outright purchase when it comes to my vehicle.

I keep trying to tell my wife that it will be a secured debt and that as long as we are current and continue to stay current on it, I cannot see the trustee objecting. She's using the rationale that the lease only shows up as the amount she uses on her credit report, whereas a purchase will show the entire amount, including finance charges for the entire length of the loan, ect.

She doesn't want to see the trustee come in and make me surrender the vehicle when we go through our 341 meeting. I'm also counting on our car payments to help us with our I vs J schedules so that we do not end up forced into a Ch 13. I'd rather see the trustee make me surrender a car and get a "beater" than to end up in a 13.

I have the following questions:

1 - If you are current and will remain current on a car payment, will the trustee make you surrender it?

2 - Does it matter any if it is a leased vehicle vs a traditionally financed vehicle?

3 - Does the type of car and payment/total cost factor into it? I'm not looking to go out and get a Corvette, but I don't want to have to force myself into a jalopy either.

Any other bases I'm not covering? Please feel free to comment. As always, thanks.

[Runnin on empty]

No thoughts?

[DivorceRuinedMe]

I did the same thing. I had equity in my car so I traded it in and got the same exact car, just newer. I didn't put any money down and b/c I drive so much I won't have any equity for a mighty long time. My lawyer did tell me not to go over $400 payment wise. Not sure why, maybe that's the number that is scrutinized in my district. I bought. I have leased before and have not been happy after my lease ended so I just bought something less expensive.

[poorme]

1. No, not usually. As long as everything 'fits the picture' you should be okay.
2. No.
3. It could. Consult with your lawyer on your specifics , but I would suggest keeping purchases and transactions to a necessary minimum in the months leading up to your filing. Don't give them cause to look deeper, and a pair of 'new' cars might look funny.

[Runnin on empty]

Thanks for the advice. I know we're filing and it feels wrong to consider getting new vehicles, but both of our cars are/were so problematic that it is almost more expensive (in the long run) to keep them than to get new ones. We did speak with our lawyer concerning this, and he felt that we would be fine, as long as we "Don't go out and get Cadillacs and you'll be fine" (his exact words). We're not looking at anything remotely close to Cadillacs.

This will be our only purchase from the time we decided to file and filing (which will be 3-6 months minimum). I guess another big part of it is that we are afraid that after we file that we won't be able to get vehicles, when we will probably be at our most vulnerable, at least fiscally.

Thanks again everyone. I'm so glad we have this place to bounce things off of each other. I plan on being here long after our discharge to help "pay it forward" to those that unfortunately will come after me.

[poorme]

You'll find a nice crowd here. Read all you can, and don't hesitate to ask questions. You never know just how much help your question can be to someone else looking for the same answer. Good Luck!