Buy a new car before bankruptcy?

[inpain66]

OK. As most of you know my current car loan is with a credit union so I am going to lose it when I file. My payments are 300 a month right now.


I will lose my job if I lose the car. I am thinking of going out and trading in this car and buying a new car before I file. My current payments are the same as would be on a new car. A new car would have a warranty so it would make more sense too. My current car just came out of warranty and I am going to lose it in chpt 7 because it is with the credit union.


If I get a brand new car before I file will it look bad? I want a new car because it would make more money sense. With a used car I would have to pay a loan anyway and have to pay all the repairs that come with it.

If I do get a new car I would need a cosigner. How would this effect me when I file?

My FICO keeps dropping and dropping. I need advice now.

I would be able to pay the loan after a chapter 7. I just cannot survive with no car. I am scared!!

[kenshirley]

So what makes you think you cannot reaffirm a loan with the Credit Union?
They don't want your car back.
And I am not sure what affect your BK would have on a cosigner either.

[inpain66]

I cannot reaffirm the car with the credit union cuz they would want me to reaffirm the personal loan and credit card I have with them too. Then the chpt 7 would not help!

[kenshirley]

I know what they want, but legally what can they do.
I would advise you talk to an attorney as I don't think they have any choice in the matter.

[StartingOver08]

I cannot reaffirm the car with the credit union cuz they would want me to reaffirm the personal loan and credit card I have with them too. Then the chpt 7 would not help!

They always ask - but that does not mean you have to agree. I just reaffirmed a car loan with my CU - I also had a credit card (w/ a $23k balance) and a second mortgage (with a $62k balance). I was able to reaffirm the car and REMOVE THE CROSS COLLATERALIZATION. So I kept the car and gave back the cc and 2nd mtg. I just asked them to remove it - they agreed and put it in writing. BTW, I also asked to skip a month, drop the balance, drop the payment amount and extend the term a couple of months to save almost $100/month on the payments. It does not hurt your case to ask. Speak only to the BK dept to renegotiate your terms.

[inpain66]

They always ask - but that does not mean you have to agree. I just reaffirmed a car loan with my CU - I also had a credit card (w/ a $23k balance) and a second mortgage (with a $62k balance). I was able to reaffirm the car and REMOVE THE CROSS COLLATERALIZATION. So I kept the car and gave back the cc and 2nd mtg. I just asked them to remove it - they agreed and put it in writing. BTW, I also asked to skip a month, drop the balance, drop the payment amount and extend the term a couple of months to save almost $100/month on the payments. It does not hurt your case to ask. Speak only to the BK dept to renegotiate your terms.

WOW! Did you tell them that you are filing chapter 7? Also were u able to keep your checking and savings with them? I love my credit union and it breaks my heart to lose them.

[StartingOver08]

Yep. They were sent the CH 7 notification. I spoke to the BK dept within a week of filing. The first reaffirmation they sent to my attorney prior to our conversation and it had the cross collateralization in it. I called them and renegotiated. They were receptive, made the changes we agreed to - sent over a new reaffirmation with our agreement in writing. I signed and the attorney signed. It was filed with the court - all good However, I did have to give up my savings and checking with them - but they were not my primary bank anyway. For me, it was worth it to keep the vehicle and give up the cc/checking/savings and the second mtg.

Course my other car was with another bank, not a CU and they were a PITA. Never could work anything out with them. So each place is different. Giving that car back, motion gets filed Monday!