722?

[jeb]

I just found out that I had monies I didn't know I had in a stock account - if the BK is not filed before the end of the month, as I am not paying any bills right now, I am going to have over $7000.00 in cash.

In Fl, with the $1000.00 exemption, that is a big problem for me.

My present car has payments of $369.00/mo, is worth $11000.00 and I owe $15000.00 on it. With only 21000 miles on it and in perfect condition it would be nice to keep it but add the insurance in and it is costing me over $430.00/mo.

I will need a car so I checked with a dealer and he said he could get me qualified for a new car - before I file BK - with 0% interest.

Don't understand just how a 722 works but from what I have seen they end up with very high interest.

Question -

1- can I use the cash I have for a down payment on another car?

2- if I do a 722, is there a way to keep the interest rate down?

All things being equal, a small pickup would suit my needs better but they don't make small pickups yet.

Any suggestions would be greatly appreciated.

Tks much - jb

[Help!]

If you put $7K down on another car, you would have equity in that vehicle greater than your exemption. The car would then be an asset available to the trustee for liquidation. The trustee's perception might also be that you had $7K available to you from this stock to repay your creditors but you decided to purchase a new vehicle instead. You also don't want to acquire new debt "on the eve of bankruptcy". Sorry - I don't have any easy answers for you but I can give you some things to consider.