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    New used car

    Hello. I'm looking at chapter 7. I have 30k in unsecured. I owe 20k on a car worth 8k that i will be surrendering. I live in indiana. My question is should I get a new used car before I file or after. Looking at under 10k for good used car. I have a 20 mile one way commute.

    #2
    Have you decided when you're filing? If it's not soon, it may not make sense to have two auto loans. I am assuming you would be getting an auto loan for the second vehicle, as the Indiana personal property exemption appears to be $9,350. If you were to pay cash, you would have not leave you with anything for other personal property. Also, what is your credit score like now? It may make sense to get a loan now in order to get a better interest rate.

    Alternatively, you may be able to get a few months of no payments with your current car, between the time you stop paying, state your intention of surrendering, and the day the car is actually taken. Depending on your auto loan payment, this may more than account for a potentially higher interest rate on your new auto loan. (Who knows, you may be able to get a better rate AFTER filing bankruptcy). If your plan is to retain and pay (assuming this is allowed), and you later stop paying after the BK, this may be an even longer period of payment-free driving.

    Not definitive advice, but hope it helps.

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