Car

[poormama]

We had to buy a car because our lease was coming up. We bought a reasonable used car. We're not filing our Chapt 13 until the end of August, beginning of Sept. What will happen with that loan? Can we keep it out of the bankruptcy? The car payment is $100 lower than the lease was and it's easy to prove that our lease was coming up. I just want to make sure we're able to keep it. We need a car for my husband to get to work and me get to school.

[NoTomatoCan]

I just want to make sure we're able to keep it. We need a car for my husband to get to work and me get to school.

You will be fine. This is a common strategy for folks filing chapter 13. We all need reliable transportation, and it sounds like you were reasonable with what you purchased. No issues.

What will happen with that loan? Can we keep it out of the bankruptcy?

Technically all your debt is included in the bankruptcy. But if you mean can you continue to pay it outside of what you pay your trustee, then likely yes since you are current. Some districts still have you pay secured loans inside the plan, even if they are current OR if you got a really crappy interest rate, it might be beneficial for you to include it in the plan and have your attorney request that it get paid at the local "Till" rate (typically around 5%).

[poormama]

We were a little nervous about it. We actually got 6% from our credit union. Not a bad percentage rate I figured. Probably would've been higher after filing.