Lease ending, any way to purchase?

[schism7273]

I tried to ask this before and got the "tsk tsk, go search" response. Well, I did and still I am begging for some guidance. I couldn't find an answer here in the archives.

Currently 1 year in on Chapter 13.

My lease ends in May/June timeframe. My lawyer did not tell me to buy a new car, wish I had now. Do I ever. I am looking everywhere for a way to keep this car. I can buy it for 14K plus taxes, etc. from Ford which is well below what they are selling for now (18K approx).

Does anyone here know of a company who will lend money to someone in a chapter 13? I asked Carmax, no....and Roadloans seems like they require you to buy one of their cars. That makes me very nervous.

Any advice?

[jcj112562]

Try looking for the folks who make redemption loans to those in a Ch7...that might be where to get funding, since in a convoluted sort of way, that is what you want to do.

John

[lrprn]

Here's some great advice about buying a car during an active Ch 13 - it's from http://www.ehow.com/how_2095984_purc...hapter-13.html :

1. Talk to the attorney. The attorney who originally filed the bankruptcy case can best advise as to how to proceed and budget limits.

2. Locate a dealer that will take buyers currently in a Chapter 13 bankruptcy. Many times the bankruptcy attorney's office knows a few dealerships who will accept and finance people who have filed bankruptcy.

3. Find a car. Make sure it is reasonably priced. However, it is also important to get a car that will run for a long time, since when in Chapter 13 there's not much money available for car repairs.

4. Fill out the paperwork necessary. The bankruptcy attorney or trustee's office can get the paperwork needed from the seller of the vehicle. Many times this paperwork is available via the trustee's website.

5. Get the trustee's approval. Before buying the vehicle, the trustee's approval will be necessary. The attorney will send the paperwork over to the trustee, and once it is approved, the car can be purchased.

6. Keep in mind that the car is financed outside the bankruptcy. This means these payments are the responsibility of the person who purchases the car, and will not come out of the bankruptcy payments.

Have you discussed buying this car with your lawyer yet? If not, then that's the place to start. He/she is likely to know which lenders are Ch 13-friendly in your area. Good luck!

[Lissy]

....and Roadloans seems like they require you to buy one of their cars. That makes me very nervous.

Any advice?

Roadloans does not sell cars, so you are not buying one of their cars. However, you do have to buy through a dealership that they work with. You could call them and see if the dealership you leased your car from is one of their preferred dealers. RL does charge a fee, which is added to the cost of the car you buy and is a percentage of the price of the car, so be aware of that. I didn't know that at first and it threw off my calculation of how much car I could afford by a few thousand dollars.

Some things to think about, assuming you are in a 5 year plan. How old is your current car? Do you think it will last another 4 years? If not, consider turning it in when the lease is up and buying something newer. That way, you'll have more options and let's face it. When you're bankrupt, your options are already severely limited.