Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Should we buy a car before filing Ch7 to replace the one we intend to surrender?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Question: Should we buy a car before filing Ch7 to replace the one we intend to surrender?

    We are getting ready to file and we want to surrender our car in the Chapter 7 process.

    We will need a car and are afraid to save up and buy a cheap cash car because that is what we had most of our lives and there were so many mechanical issues along the way.

    We have a loan offer that is good through October with a low down payment. The loan has high interest (19%), but only $500 down. Our current payment is $399 and that is too high for us. I am thinking we should use the loan to finance a $5-$7,000 vehicle before we file...getting a payment around $240-$250 a month, and once we secure the 2nd vehicle...stop paying on the one we already own.

    We have already paid $7485.00 on our current car that had an original list price of just under $14,000. We still owe $14,000 and the car is probably worth around $7-$9,000 (2008 Suzuki SX4).

    In a free initial consultation the attny seemed to suggest that it would be okay to buy another car right before filing. Only one of us works so we can't justify two vehicles as being necessary. Would it be viewed as abuse to buy a car knowing that we are just letting another one go? Also, it looks like we need a car payment to keep our disposable monthly income at a safe level to avoid Chapter 13. I think we would make it without a car's expenses, but it would be close.

  • #2
    this is interesting question.
    Discharge date: October 2017 (will it ever get here?)

    Comment


    • #3
      We bought a car right before filing after discussing with our attorney. We were not letting one go though. For us we had a lease that was going to end during our Ch13 and we didn't want to have to deal with the aftermath of that mid-plan.

      Comment


      • #4
        Yeah, I have had a tough time finding someone else who experienced the same situation as we are, which is kind of a surprise really because it seems somewhat common to let a car go due to high payments. Surely all those people had to find a way to replace the car. We live in a rural area with no public transportation.

        So, you had two cars right before filing then? One of them was a new purchase and one was a lease that was still good for a while? Also, did you have a need for two cars? Only one of us works.

        Comment


        • #5
          I agree. I cannot find it brought up anywhere online either. Quite surprised. Normally I don't ever post questions because someone else already has, but I can't find this one.

          Comment


          • #6
            Originally posted by dr276301 View Post
            Only one of us works so we can't justify two vehicles as being necessary.
            Did the attorney tell you that? My husband had no job when we filed and we were allowed to claim expenses of two cars, including the one I bought a month before filing. The older car was paid off, so it's not exactly the situation you are asking about. But, I don't think both spouses have to have a job in order to claim expenses of 2 cars.

            When the attorney suggested it would be okay to buy a car, did he know about the one you already have? If not, call and ask this question or go consult with another attorney. It is always a good idea to consult with more than one.
            LadyInTheRed is in the black!
            Filed Chap 13 April 2010. Discharged May 2015.
            $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

            Comment


            • #7
              Hi LITR,

              No, the attorney did not say that we had to both be working to own a car. I need to call back the attorney to check on this. I had just read online that any purchases made before a bankruptcy needed to be reasonable expenses. It would be helpful for us to have two cars anyhow so that I could run household errands while my wife is at work (groceries, issues w/child at school). We do need to surrender our current car though.

              I read somewhere that there had to be two licensed drivers to justify owning two cars, which we both are.

              I guess now I just want to make sure there is no objection since we are giving up a debt, just to aquire a new one. I don't think it'll be an issue though since we are doing it to get a lower monthly payment for our budget.

              Thanks for all replies.

              Comment


              • #8
                So, I spoke with my attorney today. She said that buying a car before filing in my situation would be fine, but that we would have to wait until the new finance company puts a lien on the car title. Apparently that can take up to 30 days. If they don't have a lien in place when I file Chapter 7 then the trustee would take and sell the car as an asset. That would create a major problem. I think we might wait to buy until after filing.

                Comment


                • #9
                  If you need the car payment to qualify you for Chap 7, why not buy the car and wait 30 days to file? What's your hurry?
                  LadyInTheRed is in the black!
                  Filed Chap 13 April 2010. Discharged May 2015.
                  $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

                  Comment


                  • #10
                    Good question LITR, here's why:

                    My wife has just had her first wage garnishment for a debt on her last pay. They are taking around $300 per pay. There will already be one more garnishment before we can file. At that next pay is when we will be able to go finance a car (that is when we will have a down payment). So, if we wait 30 days after that they will garnish $600 more dollars than if we file right after this next pay.

                    Very complicated.

                    My attorney seemed to suggest that although it is possible to get the lost wages back and exempt them, that it may not be worthwhile. After this next pay they will have received over $600 in total so I think that would be considered a preference payment and be available to the trustee. However, I doubt that the trustee will bother to go after the money if we exempted it. If he didn't get it back, we would likely have to file an adversary proceeding to compel Capitol One to return the funds. It looks like that would cost $175, plus additional attorney fees on my part. Yuck!

                    Comment

                    Unconfigured Ad Widget

                    Collapse
                    Working...
                    X