Buying a used car before BK

[jribe]

Hi,
We have two cars that we are current on: a 2006 Toyota Rav4 w/50,000 miles and a 2007 Ford Mustang with 5,000 miles on it. We are under water on both cars by about 10k each. We are for sure letting go of the ford (gas guzzler!), and were planning to keep the Toyota. However, i found a used 2004 Rav4 at a local CarMax for only $12,000, with 51,000 miles on it, and if we bought that it would save about $150 a month on car payments. Does that sound reasonable if asked? We pay $364 for the Rav and $396 on the Ford- both 6 year loans. The payment on the 2004 would be about $255 for a 5 year. We aren't filing until May 2009. Any advice is appreciated!

[madeia98]

used auto

I am filing C7 in March. My atty advised me I could buy another auto now before I start defaulting on payments and my score tanks. He said as long as my payment is lower it will be ok. my current payment is 429$/mo, I'm about 5K in the hole on it with value- I have a Dodge Ram 1500 which gets about 13 MPG. So I will be saving on gas as well. Check with your atty and see what they say!

[shabam]

Hi,
We have two cars that we are current on: a 2006 Toyota Rav4 w/50,000 miles and a 2007 Ford Mustang with 5,000 miles on it. We are under water on both cars by about 10k each. We are for sure letting go of the ford (gas guzzler!), and were planning to keep the Toyota. However, i found a used 2004 Rav4 at a local CarMax for only $12,000, with 51,000 miles on it, and if we bought that it would save about $150 a month on car payments. Does that sound reasonable if asked? We pay $364 for the Rav and $396 on the Ford- both 6 year loans. The payment on the 2004 would be about $255 for a 5 year. We aren't filing until May 2009. Any advice is appreciated!

As long as you can afford it and get the credit approved you should not have any issues with it. You may have an issue if you purchased it and then stopped paying it in a few months.

[jribe]

i plan on keeping current with the "new" car, and stop payments on the other 2. i'm current right now

[BassBoy]

You may have an issue if you purchased it and then stopped paying it in a few months.

I agree. You'll have to state that you'll reaffirm this vehicle loan when you go to file.