Should I Be Worried - Car Purchase

[KMC4]

Hi,

At the advice of our lawyer, we purchased a new car (actually used) the day before we filed since we were upside down on our other car payment. The plan is to include the upside down car in the bankruptcy but to reaffirm the new car. We were scheduled to make our second downpayment on the car last week (which we did) when we realized that we no longer wanted the extended warranty that we bought for the car at the time of purchase (we are going to get our own warranty). Since we decided on this and since the loan wasn't "official" until we paid our second down payment, we had to sign a new loan to recalculate all the numbers to not include the extended warranty. It wasn't until we were on our way home that I started thinking if this could pose a problem with our bankruptcy. The initial sale date of the car was the day before we filed but now the new date is after we filed. What do you think? Could this be a serious issue?

[laurannm]

Interesting question....not 100% sure...on the one hand you are reaffirming, but on the other hand you took on new debt when you obviously new you were filing BK. Generally speaking it's recommended that you make at least 2-3 payments before filing BK to show "good faith".

However, if your attorney advised you on this then perhaps his experience shows that this is acceptable to the trustees in your area.

[happy_ira]

I had a similar issue (thread here: http://www.bkforum.com/showthread.php?t=28465) that was unavoidable for me (only have one car and lease was about to terminate). I'm hoping logic prevails...