Getting a car to inflate schedule J

[Nowwhatohio]

Here is my situation:

For various reasons (preferences, recent credit card use/adversary proceeding threat, risk of audit) it would be advantageous for me to file in January.

Unfortunately as it is, I will be getting a raise in January and even though my attorney assures me the state median income will increase by then, he is worried I don't have enough expenses on my schedule J. As it is it appears I am positive $50 or so per month on my schedule J (even though I have expenses that can't be inlcuded or can't be included in the actual amounts because the trustee won't accept it, etc).

I was able to get financed for a car at a decent rate. Currently I don't own a car at all and don't have any car expenses on my schedule J. This will make me negative $250 per month on the schedule J.

It would also be an asset I could funnel extra money (money that had been going to CC minimums, $1300 per month) into while I wait to file in January at which time I would reaffirm the car.

What are the risks in doing this? Is there a risk building too much equity into the car before I file (I am in Ohio).

Thanks in advance!

[SinkingFast]

Your attny saying the Median is gonna go up isn't really accurate. He's probably thinking historically, the Median has adjusted in October and February. Both in 2005 and 2006. But the Median doesn't always increase in every State with each Adjustment.

We filed Sept 2006. When the Median adjusted in October, 2006, our State went down. Several others did too. Then, the Median adjusted upward again in February, 2007.

It's hard to say about the car purchase. People can argue it both ways.

Have you retained an attny yet?? That would be a key consideration.

[Nowwhatohio]

I have an attorney and he said if we needed a car to go ahead but that the schedule J would be ok as it was (it was doable). I'm just worried about accumulating money before we file in a couple months because he told me to stop paying minimums - but that's ALL my debt. I need somewhere to park the money (like a car, hah). I just want to avoid complications...

[demismom]

I've heard that if you have a negative balance between your Schedules I & J, some judges might not let you reaffirm a car loan because it doesn't appear you can afford it and it might not be in your best interest. I don't know if I heard that right or not, but that's what I heard.

[Nowwhatohio]

I hope that's not the case. I live more than 20 miles from work so the argument could be made my best interest would be served by having a car. Also, my attorney needed travel expense reimbursement information because he said that would effect the income v expenses aspect.

[keepmine]

Go ahead and finance a reasonably priced car. Don't worry about building equity in it since, cars depreciate over time. By the time you file, you'll be upsidedown inles, you make a decent downpayment.
I'd not worry about a judge not approving a reaffirmation. Cars are a necessity.