Chap 13 and buying a new car in Texas need help

[emorel1975]

Hi,

I am currently driving a 2002 Izuzu Trooper with approx 130,000 miles on it. I would be fine with the car except two basic facts:

1. Gas prices are double now then when I bought it, so I pay $50.00 per tank to fill up instead of $25.00 like a piad previously.
2. The transmission is starting to slip and the motor is making some bad noises.

I filed my bankruptcy case 24 months ago and it is a 60 month case.

I was told by my trustee that if I was two years in, which I am, that they would approve a new auto loan.

Well, I have tried to seek financing and it is not going well. I am wanting to try to get a car with 30 MPG or better and this usually means a Japan or foriegn car.

I am sure due ot the demand right now, cars that have good mileage are out of reach. i am not picky.. I just want a dependable car to start over with.

Here is my question:

1. I owe more on the car then it is worth, so would it be better to convert to Chap 7 instead of Chap 13?
2. Anyone in Texas..... Have you been able to finance a car while in Chap 13 and if you do not mind disclosing, what were the details? (down payment etc)

I am just soooooooooooooooooooo frustrated . I filed Chap 13 instead of Chap 13 since I thought it would be better to at least pay my debts back instead of walking away completely. Instead, it sounds like I am better off with Chap 7. This would basically allow me to finance a couple of months after the discharge!!! Geezzzzz Life is really backwords.

Help.... There is no way that my Ttrooper will last for 3 more years, so I really need ot figure out what my options are now. I Know laws are simular from state to state, but I would like to hear from Texas People as well!!!

[emorel1975]

Also, Would it be better overall to finance a car if I converted my Chap 13 to Chap 7. Please advise

[emorel1975]

My FICO is 574..... Which is what it was when I financed my last car before the filing.... I am sure if I can find someone who deals with Chap 13 I should be able to be financed. I di not expect a great percetnage since my score is lower and I am in Chap 13....

[CATCHMEIFYOUCAN]

Chapter 13 to Chapter 7

Hey there, I'm filing in the State of Virginia by the way. Originally I filed with Chapter 13, due to having 2 full time jobs. So I had quiet a chunk of disposable income, however seeing that the courts are not forcing me to work 2 jobs, I quit one job and have converted to Chapter 7.

My Honda got flooded just before I filed (so I guess I'm lucky there) as I was able to get myself in a new car before I filed. While during BK, if you have the trustees permission to get a new car (used) whatever than do so, I'm not familiar with car dealerships and Bk but I know if you do find one, you will be charged with a high interest rate, (I guess you know that already).

As far as converting from a 13 to a 7, make sure you don't have any disposable income of $100 or more, otherwise you may be stuck in the 13. Check with your lawyer not just the Trusteet!

Good Luck, Catchmeifyoucan

[emorel1975]

Thanks!!!! Disposible income.... LOL.... I was in Telecom and I make 1/2 what I made this time last year. I am moving into an all bills paid apartment just to keep a roof over my family of 4 heads.

Thus, I do not have the money to pay a payment and sink 1000s of dollors into an SUV that is bad on gas and needs repairs.

I am really trying to figure out which is better when it comes to financing a car, Chapt 7 or Chap 13..... I will talk to my lawyer to see what they say. I am just sooooo fed up from trying to do the right thing by paying back some of the money and having trouble getting anything that I need.

Let's see:

I am paying $243.00 per month for the SUV.
I am paying about that for gas for the SUV.

The cars I am looking at are $11,000 to $17,000, so my payment even with poor credit would be no more then $350.00 per month. I estimate gas being $100.00 to $150.00. I would be paying the same that I am now, but I would have a more dependable car that is better with gas. Since I have 36 months left on my current payment schedule, it is not like I am able to pay the car off any time soon!!! Thus, buying a new car would not really add to the problem, but would help depending on terms, APR, ETC......

[SinkingFast]

One thing to consider,..............

If you file Ch 7, you will likely get several 722 Auto Financing offers. 722 refers to the Section of the Code that allows for this.

The 722 offers we've gotten have been both for refi of current loan and/or purchase of a late model car/truck/van owned by the Lenders.

It's something you would want to discuss with attnys as you do your Consults. See what they have to say.

[FilingOnMyOwn]

I pay $50-60 in gas to fill up a sedan, and a 2 door coupe I used to have. So it will cost you the same to fill the tank. You may get more miles out of the tank, thats all.

[razorguns]

welcome to reality.

chp 13 gives u no better credit advantages over a chp 7. so much for any respect for at least 'paying' some debt back eh?

unless you want 25% interest rate - just sell the car - then buy some good relaible toyota or honda for $8-$10k off craigslist.org

in the long run, your wallet will thank you. And you won't be bending over and sticking thousands of dollars interest back into creditors hands. Auto loans is how the industry gets back some of the money it loses thru bankruptcy. Dirty secret.

r