Car loan question

[mkstlowe]

Yes, definitely your attorney and case specifically. No Chapter 7 person should ever do this before filing as the vehicle will be unencumbered and be subject to sale. Worse, for the Chapter 7 person, the 401(k) loan repayment won't be an allowed deduction.

Always consult your attorney for your specific case. In this specific case, while it makes my skin crawl, taking a loan from your 401(k) in this particular situation, may be good.

I agree it makes my skin crawl to do this loan, but after searching and searching no one will finance us right now and we need a vehicle. We not going to buy out the truck. We going to get something cheaper but will get us through 5 years. We just lucky we have this option right now. Many do not.

[jmac]

I flew my mom out from idaho to purchase a truck for me. My lawyer told me it was ok, If i made the car and insurance payment i could claim the vehicle allowance. I hope he is right i will find out soon.

[justbroke]

I flew my mom out from idaho to purchase a truck for me. My lawyer told me it was ok, If i made the car and insurance payment i could claim the vehicle allowance. I hope he is right i will find out soon.

He is not right unless you are an obligor (or co-signore) on the loan. The "ownership" allowance is for actually owning the car. Is the car titled and registered in your name, or your mom from Idaho's name?

[jmac]

That may be a big problem, it is in her name.

[jmac]

I just reread the e-mail asking if it was ok to have a car in my moms name but i pay for it and both lawyers said yes. I hope they can explain it. Both said get a letter from your mom explaining this and it will be fine.

[justbroke]

I just reread the e-mail asking if it was ok to have a car in my moms name but i pay for it and both lawyers said yes. I hope they can explain it. Both said get a letter from your mom explaining this and it will be fine.

Good luck with that. Seriously... good luck with that. Most Trustees are picky. Perhaps they know the Trustees and the Trustee will overlook the subtle difference between the types of obligations.

The Trustee can't take the car, since it is legally your mom's, so that is not my concern. My concern is with the ownership allowance and the complementary ownership expense allowance.

[jmac]

Yea i will be really screwed if i dont get the allowance, cause i will be making the payment.