auto loan and means test

[mich]

I had my free consultation with the BK atty and he recommended I
purchase a car to get my expenses up for Chapter 7 means test. I am being denied an auto loan even with a co-signer of 700+ because I currently have 5 investment houses that are upside down and on there way to foreclosure. my credit report is showing delinquencies (and my score has dropped to 500) any suggestions on how to do this. My co signer says he will buy the car outright and I can make the payments to him. Is this allowed in BK.? Is a lease or buy better? any ideas or suggestions? I live in Arizona Thanks

[JRScott]

So long as you have a written agreement with the co signer I think it would be okay. I'd check with the lawyer though first. Also remember to see 2-3 additional lawyers.

[jessegirl]

I THINK if you can show proof that you are paying the other person, ie. paperwork and cancelled checks, it might work. I will defiantely check with your attorney.

[BKParalegal]

My suggestion is to get a couple more consultations with attorneys. It sounds like either your district or your attorney does not allow surrendered property to be counted in the means test, because with 5 properties you have a ton of expenses going out the door(regardless that they are being foreclosed on or not) Since I am unfamiliar with your district, it may be the case that only secured debt that you are intending on keeping can be listed, but I would verify this. I am afraid the suggestion of having someone else buy the vehicle and you make payments, may not fly as well, since the debt against you would not be "perfected". Again I would get a couple of consultations first.

Good Luck