uh-oh - need major car repair and no way to pay...

[3131tj]

I stopped using my cards in anticipating BK in Oct. I did take one small cash advance (I have never taken one before but needed to cover some bills while waiting on check) last month. Well, now I am facing a possible $500-1000 of repairs to my car. I do not have the cash and now no card to use. If I DO use a card does that just mean they may not forgive those particular charges? I was so afraid my car (a 1995) would do something like this. Any help appreciated. I feel like I will never get ahead even after BK

thanks

[davidb81]

You don't want to charge these repairs. I know thats easy for me to say I can understand your situation. Any recent charges, and cash advances can be disputed in your bk. What is wrong with your vehicle?

[accentone]

We are in the same boat. Husband came home yesterday and said his car is on its last legs! Not sure what to do. Should we try and finance another cheap car before filing in October? We've already thrown enough money into the old car.

[hhou812hh]

If you can honestly afford to fund a ch13 plan that maybe your only option. I had the same issue. My car was worth around $3500 and I owed $9000 on it. I charged $1500 in repairs to find out I needed to spend another $1500 on it so I traded it in for the $3500 with all of it's problems, used a cash advance (taken last May) to pay off the $9000 and put $2500 down on a new car especially with the new car discounts. I had to do this since it will be difficult under bk to get reasonable rates on buying another car new or used.

Do to the above my only option is a ch13 since this would be considered fraud in a ch7 and I would be dismissed for sure. I even explained the above at 2 free consultations and the atty's said it was alright for a ch13. If I file a ch7 I would be burned alive for doing the above so close to filing.

Good luck!!!

[accentone]

hhou812hh, a friend of mine bought a brand new SUV and six weeks later filed ch7. No one even mentioned a word about it. As a matter of fact, her lawyer told her lots of people do it because they know they won't be able to get a car at a decent interest rate for awhile. Nevertheless, I will call my lawyer before I do anything.

[hhou812hh]

Honestly I'm much too afraid to take the risk. I owed 30k in cc debt until May of this year. Now I owe 60K! I used cash advances of 30K to settle a legal dispute I had, lawyer fees, did a balance transfer, car repairs and finally bought the car as well as pay off the old car loan. I am also single and make approx $70k a year with OT. I am the poster boy for bk fraud to the US Trustee as far as I am concerned. If I did this all a year ago it would be a different story, but 90 days before filing it is not a good idea.

Thanks for the input!!!

[accentone]

I guess 30K of racked up debt in 3-4 months is alot to a Trustee. But if you honestly weren't thinking bk, you can explain yourself honestly. Do you have a lawyer? What does he/she say?

[3131tj]

OK, back to my original question - you two can converse elsewhere! lol! just kidding ;)

David - I have a leaky rear seal and possible ball joint replacement. The annoying thig is that the ball joint might be from an accident I was in back in March. I asked both bodywork guy and my Subaru guys to check it out and Subaru said they did not hear the sound - now it has gotten worse. I am bringing it in ASAP. I do not know if we can prove it was from the accident and have the claim reopened at this late date.

As for buying new car, filing chapter13, etc. none of these are options for me. I am single and now that I am finished school (I am 50 and spent the last 6.5 years in school) I am making more money but it goes out as soon as it comes in to try and catch up on debt. Excluding my cc bills I am trying to pay off taxes and student loans. I just feel so screwed. I was looking around my apartment last noigth for things to sell. This really sucks. I don't have any rich friends or family to borrow form either. I just don't know what to do.

[hhou812hh]

3131tj:
sorry about that, this is your thread. I was just giving myself as an example. If you can't do a ch13 then I have no advice since it will look like fraud if you charge on the eve of bk to repair your card. Good luck!!

accentone:
of the 3 atty's I spoke with 2 actually said I could probably file a ch7. One said I would be better off with a 13 just as HHM said in past threads. I'm not out to "beat the system" anyway. I have about $300 to $350 per month left after living expenses. If I pay around 12k into the plan for 3 years then get the almighty discharge, it's a small price to pay as opposed to the risk of the creditors and US Trustee roasting me over an open fire.

[3131tj]

3131tj:
sorry about that, this is your thread. I was just giving myself as an example.

I know you were. Runaway threads can easily happen

My car is 1995 Subaru and even though my warrany is long gone I still go to the dealer for service so they know me very well (have had the car for 7 years). I was thinking that I might talk to the owner (who knows me as a customer) to see if he will work out a payment plan. They know that when the time comes I will buy another car from them so maybe he will work with me. The car only has 101,000 miles on it (I work from home, so don't drive it a whole lot) and I really don't want to give it up yet. I'll see what he says.

Some may say for me to go to a cheaper mechanic, but frankly their prices are not far off and I do trust them and do not want to risk poor service at this point.

thanks