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

Buy/lease new while my credit is still good?

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

  • Buy/lease new while my credit is still good?

    Here's the situation. Just went through a divorce will most likely have to file chapter 7 at some point. My credit is still good (in the 700's) as I'm barely above water making the minimum payments on everything. Soon, all will start catching up with me. My current car is only a year old (lease), but I took on a lot of negative equity with it and the payment is ridiculous. I will need a car post-bankruptcy, so here is what I am thinking. Buy/lease something new without trading in (eliminating the negative equity), voluntarily surrender the old car. Thoughts? Am I missing something?

  • #2
    Sounds like a good plan to me. I recommend against leasing unless you have a good business reason to do so.

    Do keep in mind that if you default on the lease and they repo, they will probably sue for a deficiency. So make sure you time it so that you aren't forced to file sooner than you plan. Also, if you know you will file and have no good reason to delay, stop paying on your unsecured debt (after buying the car of course).
    Last edited by LadyInTheRed; 03-19-2016, 04:17 PM.
    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


    • #3
      One other thing: Find out what the vehicle exemption is in your state so that you can make sure you don't have too much equity in the new car.
      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


      • #4
        Thanks Lady In Red! Well I'm looking to lease the new one so there won't be any equity in it. One more thing...I still have a few credit cards which I can use to pay off the negative equity in my current car (then just trade it in for the new one) if you think that's a better idea? Thanks again!!!

        Comment


        • #5
          Leasing any vehicle is the biggest waste of money on Earth, unless you are a business, and are leasing for tax purposes. Why not find out what your state's vehicle exemption is, and buy a beater that is worth close to that? A lot of good, dependable cars have very low values due to depreciation, but will still get you where you need to go.

          Comment


          • #6
            State vehicle exemption is 7,500. With a lease there's no equity, but you get a car that will last you the 10 years while you're rebuilding your credit. So should I just continue to buy beaters over and over again? That sounds like a bigger waste of money to me.

            Comment


            • #7
              You can buy a pretty decent car for less than $7500...a lot less than $7500. In fact, the market is flooded with decent, reliable used cars and vans for approximately $2000 to $3000. That's a lot better than having a monthly payment, even taking into consideration routine maintenance, and the possibility of repairs.

              Comment


              • #8
                It doesn't take 10 years to improve your credit. Bkforum members have reported getting great auto rates within a year or two of Chap 7 discharge.

                Lease for ten years and at the end of 10 years you can buy a 10 year old car or return it. Buy a new or relatively new used car with a 5 year loan and in ten years you will own a car that is probably in pretty good shape.

                Or, as bcohen suggests, buy an older used car and drive it as long as you can. By the time you have to replace it, you should be in a better financial position.

                To get the best of the fresh start a BK will give you, you need to make good financial decisions. Leasing a car is rarely a good financial decision.

                Using credit cards to pay down the lease before filing BK is risky. Don't do it without first discussing the possible consequences with a BK attorney.
                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


                • #9
                  Thank you both for the advice. So it sounds like voluntary repossession is less risky than taking on the additional cc debt. Lady in the red, you mentioned a risk getting sued by the leasing company but if I'm going to file anyway, what's the risk? At what point should I stop using the credit cards and let them go? I'm at the point where I can't afford making the minimum payments and I only was because I wanted to get the auto situation figured out. Thanks again.

                  Comment


                  • #10
                    I was just worried about the leasing company repossessing the car and trying to get a default judgement before you were ready to file.

                    First, do whatever you are going to do about the car so you can do it while you have good credit. Then, assuming you have not made luxury purchases totaling $650 with the same creditor within 90 days of the date you will file BK or taken cash advances over $925 within 70 days, I would stop making payments as soon as I was certain I was going to file BK. But, be ready to start getting phone calls from creditors.

                    Before you do anything that you can't reverse, please consult with a couple of bankruptcy attorneys and ask them these questions.
                    Last edited by LadyInTheRed; 03-23-2016, 10:25 AM.
                    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


                    • #11
                      Thanks!!!

                      Comment

                      Unconfigured Ad Widget

                      Collapse
                      Working...
                      X