Can someone clear this up for me, I am confused. My friend needs to file ch.7BK, but she is in need of a newer vehichle. Her credit is already beginning to suffer because of all her debt, and she knows she will have to pay a huge payment on anything she gets due to the high interest she will be socked with.
I am confused as to how the whole vehicle thing works in a ch.7. If she goes and gets a car tomorrow, and she buys the car for 15,000 dollars, then she files BK next week, what will happen as far as her being able to reaffirm the car? In Florida, you are allowed a $1000 exemption for a vehicle. So, does this mean if the car she buys is worth 15,000, she will have to pay back 14,000 to the trustee in order to keep the car? How can this work if she still owes 15,000 on the car to begin with? How can she make a payment to the trustee as well as make her regular car payment each month? She doesn't have much income as it is so I am wondering how she will be able to afford making the "buy back" payment as well as the monthly payment to the financing company, as well as car insurance, as well, as rent, as well as all her other bills. I'm confused about this and I am trying to help her out. If anyone can explain this to me, I would appreciate it. I know there are several posts about vehicles, but I can't seem to find a clear answer about what happens with a new car. If she just bought the car, and she still owes the full price, what happens as far as equity? Thanks!
I am confused as to how the whole vehicle thing works in a ch.7. If she goes and gets a car tomorrow, and she buys the car for 15,000 dollars, then she files BK next week, what will happen as far as her being able to reaffirm the car? In Florida, you are allowed a $1000 exemption for a vehicle. So, does this mean if the car she buys is worth 15,000, she will have to pay back 14,000 to the trustee in order to keep the car? How can this work if she still owes 15,000 on the car to begin with? How can she make a payment to the trustee as well as make her regular car payment each month? She doesn't have much income as it is so I am wondering how she will be able to afford making the "buy back" payment as well as the monthly payment to the financing company, as well as car insurance, as well, as rent, as well as all her other bills. I'm confused about this and I am trying to help her out. If anyone can explain this to me, I would appreciate it. I know there are several posts about vehicles, but I can't seem to find a clear answer about what happens with a new car. If she just bought the car, and she still owes the full price, what happens as far as equity? Thanks!
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