When to buy another car?

[skyan]

We are about to file a CH7. We have 2 cars, both old and over 200,000 miles. One is completely broken down. We need another working vehicle. If something happens to the only one left working, my DH won't be able to get to work. There is no public transportation where we live.

Will we have to wait until after filing or after discharge to try and buy another car? Or can we try now, before filing?

Thanks.

[mymymy]

I wouldn't if I were you. I'd wait til after discharge. Maybe sink a little money in the working car to insure that it keeps running for the next 90 days. JMHO

[Cmonlottery]

If you try now, you may have to wait before you can file. We tried to get a car after we filed and with a co-signer. No one would touch us with an open BK. You may be able to get one after your meeting, but count on high interest rate and a big downpayment. After discharge it will probably be a little better(but not much).

[HHM]

Strictly speaking, you are not allowed to buy anything on credit while your BK is pending (open)

[skyan]

Well, we really need to get another working vehicle. Of course, we can't really afford payments either. But we found a place that lets you tell them how much you can afford each month and so you basically just have to pay longer if you can only afford really small payments. They don't charge interest. Of course I am sure it's figured into the price of the vehicles. They are all older cars. We have bought 3 cars this way in the past. But that particular place is now out of business. But we have found others.

The last vehicle we bought like that lasted us four years and we paid it off in less than a year. Of course we were able to pay more a month than we could right now. But I just mean to say, that the cars may be older but they can last long enough to make them worth it. That particular vehicle is still in our driveway. But it needs a new motor. It has over 200,000 miles on it. What it would cost to fix it, I feel we could just buy another for just a little more.

And we haven't filed yet. So you think if we did buy a car now, they would stop us from filing now? I guess we can try to keep the only running vehicle running till we file and get a discharge. We are just getting scared that something will happen to it. It has about 230,000 miles on it. And my husband drives about 40 miles one way to work 5 days a week.

Anyway, thanks.

[kevin]

Response to Chap 7

If you do indeed file for Chap. 7, you will not be able to refinance or purchase a car. You might want to think about taking some equity from your home before you file for Chap. 7 because after you file , you cannot refinanace for between 4-7 years after the date. Regardless of your credit, there are options before filing. Feel free to email me at <email removed> Kevin

[skyan]

I don't own my home, I rent. But thanks for the suggestion.

The car places I am talking about don't do credit checks. They don't even report to credit. At least the one we bought those three cars from didn't. If they could/would have, our credit would look a WHOLE LOT better.

Anyway, thanks again.

[HRx]

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