Just bought a car

[tazzy20176]

I just purchased a toyota camry...used to drive a mercedes but traded it in because it was given me too many problems. The question is.....Since I just bought the car, a few days ago and will be filing Chapter 7 next week, will that raise questions with the trustee. My car payment is $50 higher than the Lexus because of my interest rate was a little higher, but I'll be saving on the the maintenance and gas in the long run.

[RedLight]

Did you speak with your atty before purchasing the vehicle? It sounds as though you made the decision to help you become more financially stable, which is a good thing in the eyes of a trustee. Is the overall principal balance smaller than what was owed on the Mercedes? I would imagine imagine that it wouldn't be a problem as long as you have the correct info when you file. And besides, Toyotas cost a lot less to repair than a Mercedes.

[tazzy20176]

The principal is $10,000 more because the Mercedes was an older model. Again, I think that it will save me more money over the long run since my Mercedes was not under wanrranty any longer. I spoke with my attorney and he stated that as long as I did not purchase a luxury vehicle, it should be ok. I just wanted to get another opinion or see if anyone else has gone through a scenario like mine.

[RedLight]

It sounds like a good move. I just had my 341 meeting and am thinking about surrendering my cars to get newer ones...the reason is similar to yours. The mileage is high and repair costs are high as well. We are also upside down on both of them. Trust me, now is the time to get everything in order.

[wayne-o]

lots of people buy a new car before bk. dont sweat it and enjoy your new car.

[tazzy20176]

So with me filing bankruptcy in 2 weeks or so, do I need to reaffirm my new car loan? Is it a way that the new car finance lender can take it back if I'm current on my payment? I just feel a little nervous about buying the car right before bankruptcy.

[PoorGrammyinBK7]

So with me filing bankruptcy in 2 weeks or so, do I need to reaffirm my new car loan? Is it a way that the new car finance lender can take it back if I'm current on my payment? I just feel a little nervous about buying the car right before bankruptcy.

Yes you will probably have to reaffirm it. If not, you can probably expect an objection from the creditor on grounds of fraud (because of it only having been 2 weeks before filing).