Buy a used car now if we are boderline 7?

[tools2teach]

My wife and I are over $390 on means test. We want to surrender our 2 leased cars and buy used one. My lawyer is still trying to work out the numbers, but would this effect the means test if I was to buy now?

[WoodSprite]

My wife and I are over $390 on means test. We want to surrender our 2 leased cars and buy used one. My lawyer is still trying to work out the numbers, but would this effect the means test if I was to buy now?

Yes, it would affect both your means test - since you'll no longer have the high lease payments - and your exemptions, since the leases don't have equity and the used car might, depending on how much you put down on it. Those are likely the numbers your lawyer is crunching...at least I hope so!

[tools2teach]

But doesn't a used car have no equity if you don't put any down payment. We are planning to get a loan before out credit goes to hell and where in the BK process will be able to make a purchase of a used car. After the filing?

[WoodSprite]

But doesn't a used car have no equity if you don't put any down payment. We are planning to get a loan before out credit goes to hell and where in the BK process will be able to make a purchase of a used car. After the filing?

Oh...yes, absolutely. If you can finance the whole thing (NOW, as you say), you're good. And you may be able to use that exemption on something else.

[mmenz22779]

I purchased a car this weekend financed the whole thing at 21200, my bluebook is 17000 so I hope i am good to go and they wont even look at the car. I will pay on the loan before during and after BK.

Does this sound ok?