Pre-13 Auto Purchase - How to approach it?

[krautrocket]

Thanks SMinGA. I'm actually double the median and it's unlikely I'd fit into a 36 month plan, even paying 100%. He doesn't have all the details yet since I'm still working on filling out the forms for him. Yes, there will be a $3000 fee for him included in the plan.

I understand your advice on the rate, that makes sense. How about the total payment amount - are there some guidelines for what is acceptable? Am I wrong to think that buying a $40,000 Audi at $800/mo two months before filing might raise some eyebrows?

I'm stopping my the dealer later today to pick up my car from service. I'm thinking of just sitting down with them and saying that as FYI before they pull, I have an interesting financial situation, going through a divorce, got behind on some cc payments but my attorney is working out arrangements with them and I'd like to take a shot at applying with my past good history with them in mind. Figure it can't hurt...

[SMinGA]

Checked your other posts - see you're over median. So your plan will be 60 months. Unless you can propose a plan to pay back 100%. So I'm confused by your atty's comment that changing your car payment can make your plan take longer? (Unless it was a general statement and he was not basing it on the details of your case.) Can't go longer than 60.

I also saw your concerns about higher than norm vehicle expenses. Can't do anything about high insurance, but OUCH! I never would have realized a deer incident would be held against you. As for the gas expense - I can relate, I drive 600 miles a week minimum. Hoping to buy a used Prius before I file.

[SMinGA]

My 2 cents: don't tell the dealer you're facing bankruptcy. They can't really submit you for financing if they know that is your plan.

About the atty comment it may take longer to complete your plan: this must mean you are under median, and have the option of a 36 month plan. But that you also have a minimum amount to be paid in - whether that be to cover non-exempt assets, pay things that MUST be paid in full during the plan (atty fees, arrears, possibly secured debt?).

If you are certain you'll need to replace the car between now and the end of your plan - now is probably best. Can be hard to get financing during a plan, needing the trustee's approval & needing to meet trustee guidelines in terms of payment amount, etc. Plus some find it hard to just obtain financing approval.

Don't worry so much about what rate you'll pay. A bad rate will increase your payment but decrease your $ to unsecured. OR once you file, the loan will be paid off in the plan at a lower rate anyhow. A doubt anyone at the dealership is going to discuss the details of your credit report with you. Its just a matter of approval or not, and on what terms.

[krautrocket]

My Audi A4 is in for what are turning out to be extensive warranty
repairs - fortunately under warranty - but it has me thinking about
transportation expense planning for the life of the plan.

I'm about to break 100k and go out of warranty; thinking it might be prudent to consider purchasing / leasing something under warranty for the life of the
plan. Due to my recent stop payments on credit cards, I am sure my FICO is
in the tan, but I might have a chance with Audi Financial since I have w/ perfect account history with them 10+ yrs, and they tend to be loyal.

I asked my attorney whether a higher secured car payment
(currently $384) would simply reduce the available DMI for the plan payment
to unsecured creditors, and if so, would it raise any eyebrows and are there
limitations / guidelines on what is an acceptable car payment amount? I
assume there must be, otherwise folks could be buying expensive cars instead of paying back the unsecureds... He came back with the answer "Answer: You are generally thinking correctly, it would mean less for
unsecureds and in reality will not cost you, however, it could result in
your being in Chapter 13 longer than otherwise."

I'm kind of scared to walk into the Audi dealer knowing that I've likely have a horrible FICO score (although awesome history with them). Should I just be up front with them about why I haven't paid, that I'm planning to file, and that the purchase would be a secured debt that I intend to keep, not surrender? Seems that would scare them off, but not quite sure how to explain the recent cc stop payments and collections otherwise.

Any suggestions from those who have been through this before?