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purchase new car b4 filing????

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    #1

    purchase new car b4 filing????

    I am preparing to file bankruptcy next month (august)........am overwhelmed with credit card debt. accumulated over the past 5-6 years. recent loss of income and medical conditions...now that credit card companies are increasing their monthly payments from 2 to 4 percent....I will never be able to keep up with them as well as regular living expenses....

    My question is this.....I drive 90 miles round trip to work 5-6 days weekly.....I am spending about $400 per month in car gas..........I have a 2001 van that gets 17-20 miles per gallon. I want to "trade in" for something more fuel efficient..............Volkswagen Jedda TDI gets 42-48 miles per gallon.........would it be wise to trade in and make this purchase now, one month before filing..............cause I sure will not be able to do it afterward....anyone been in this situation before? all comments welcome...
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    #2
    I too am wondering the same thing. I bought a new car 2 weeks ago and plan on filing a ch13 by late Sept. 2 Atty's told me since it's a ch13 "it shouldn't matter" since I'm paying something back into the plan this shouldn't be an issue. I'm not sure how it will look in a ch7. My old car was beyond economical repair and and I absolutly need reliable transportation to make the plan work for 3 years.

    You may want to call a lawyer or 2 and get some free consulting.

    Good luck!

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      #3
      Anyone know?

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        #4
        Its not a problem in a chapter 13, but in a chapter 7, you could run into issues but it just depends on how you buy the car. If you were to put a significant cash down payment to buy the car, that may raise some red flags, but generally, you are allowed to maximize exemptions.

        I think in the case of buying a car right before bankruptyc, you would have to do a reaffirmation agreement and you should be fine.

        But you should consult with a local attorney.

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          #5
          New Car before bky

          We leased a new altima in Feb and purchased a new Altima in April and filed chapter 13 in May. The trustee did not even comment except to say that we must like Nissan products!

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