I feel dirty

[PhantomPain]

On the hint/suggestion of our Attorney pre our 13 filing in April, we went bought a 2011 Civic LX-S. I put 10% down which is still $800 less then what I was forking out to my unsecured every month. Got 1.9% Honda Financing for 60 months. So 2-3 months after we are discharged, it will be payed off. Amazing but I feel dirty about it. I pick it up tomorrow.

[Flamingo]

Why do you feel dirty about it? You will be making monthly payments on the price of the car throughout your entire Chapter 13 just as you would if you did not file plus you will have a good car to carry you through the next five years and hopefully not break down a lot and cost a lot of money.

[LadyInTheRed]

If you feel dirty now, when you go pick up the car, don't read whatever you are asked to sign. I bought my Honda a month before filing. When I went to pick it up, I had to initial a box on an intake form saying I don't plan to file BK. It wasn't the loan application or the purchase contract, so I wasn't worried.

But, as Flamingo says, there is no reason to feel dirty. You fully intend to pay for the car and Honda won't lose a thing. In fact, I just checked my credit report, 8 months after filing, and Honda reports my loan as paid as agreed with no balance due. They apparently aren't too upset.

[PhantomPain]

If you feel dirty now, when you go pick up the car, don't read whatever you are asked to sign. I bought my Honda a month before filing. When I went to pick it up, I had to initial a box on an intake form saying I don't plan to file BK. It wasn't the loan application or the purchase contract, so I wasn't worried.

But, as Flamingo says, there is no reason to feel dirty. You fully intend to pay for the car and Honda won't lose a thing. In fact, I just checked my credit report, 8 months after filing, and Honda reports my loan as paid as agreed with no balance due. They apparently aren't too upset.

The document I did sign asked if I HAD ever filed bankruptcy - didn't ask if I was going to. Been approved, they'll prep and hand over the keys tomorrow. The dealer here is awesome as I bought a CRV there in mid 2009 and it was the least pressure sale I ever been involved with. Still just floored by the concept of buying a car while filing chapter 13. I fully intend to drive till it for as long as it will go. This I have done with 2 previous vehicles - one which was driven to the junkyard with 198K miles on it.

[LadyInTheRed]

Still just floored by the concept of buying a car while filing chapter 13.

It seemed too good to be true to me too. But, I also know that trying to keep an 11 year old pick up truck running during a 60 month Chap 13 plan would be asking for trouble. Now, I like to say that I traded over $900 in credit card and 2nd mortgage payments for a $500 trustee payment and a BRAND NEW CAR! I was even able to keep the truck because of California's wildcard exemption. Ironically, just as I'm typing this, my husband called me to say the truck's battery is dead. Good thing we can easily do without it and it can just sit there in the garage for a while!

[1dayatatime]

So we said to the lawyer, "if we stop paying all these bills, what are we suppossed to do with the money"? He said, "go buy a new car". We said, "are you kidding me"? He said, "you've got an 8 year old car with lots of miles. You are allowed X amount for a vehicle". So the next day we went to a Honda dealer who had a deal going. Traded in the old one, which paid the down, got a new car for a pretty good rate, we had no missed payments on anything but did have a very high debt load. Long story short, we went home with a brand new car just days before filing 13. I almost had to stop to throw up on the way home. Wife was so upset she couldn't talk. It was the most uncomfortable thing we had ever done. 20 months later it's, Thank you lawyer!!

[PhantomPain]

We said, "are you kidding me"?

Exactly!!! We're still flabbergasted. I still won't believe it until it is not only in my garage, but maybe after 6 months have passed. I think I'll just park it in the garage for a couple of weeks. It's kind of like stocking up food for the long winter ahead I guess.

[PhantomPain]

What makes it even more strange to me is when I got home, I had an email from BoA & Discover saying we can make good on our payments and stay in good standing. Funny as hell consider Discover robo-called me several times a day just 6 days after I stopped paying them. I pleaded with them several times over the past couple of years to lower my rate but they wouldn't budge.

BoA on the otherhand should't be to upset with me as I paid that card down from 12K to 3.2K in 3 yrs.