Need Advice on car-PLEASE HELP!!

[elkaholic]

Here's my situation:

Filed ch7 in Sept 2008 (GA), 341 meeting on 11/4, went fine. However, the trustee's office is now questioning whether or not I have enough disposable income to pay a little something back each month in a ch13. Trustee's office requested, and my atty gave them, a 45 day extension to review which puts me at 1/29 for ch7 discharge IF (and this is a big if) it goes through as a 7!!

In all reality, it will most likely be recommended to be converted to a 13 or the ch7 filing will be dismissed.

So, I have a 2002 model vehicle with 96,000 miles on it now which I am still paying on and was planning to keep through the ch7 and after, but now with the real liklihood of being in a ch 13, I would be keeping this car for 5 years, which will pose some real issues for me in terms of maintenance and repair costs to keep it running over that time period.

Question: Do I let them dismiss the ch7 filing and go trade this thing in for something new that has a warranty and all of that, then re-file under 13? My atty said that is an option for me, IF I can find someone who will finance me with a dismissed ch7 and all the debt on my credit report. But, is it even possible to find a lender that will do this??

Any thoughts/info/advice would be GREATLY appreciated!!

[jribe]

There's another section of the BK forum, "after the discharge" which has a section titled "Buying a Car after BK" which should have some helpful information for you. A lot of people go through roadloans or similar companies. Your interest rate, if you are able to get financed will likely be over 15%, so keep that in mind while car shopping. I agree with getting a car with lower miles and a newer year though. It would seem hard to pay on a car with that much mileage for another 5 years. Are you sure they will convert you to a ch 13? What was the disposable income? Do you have other expenses that maybe could be increased?

Here's my situation:

Filed ch7 in Sept 2008 (GA), 341 meeting on 11/4, went fine. However, the trustee's office is now questioning whether or not I have enough disposable income to pay a little something back each month in a ch13. Trustee's office requested, and my atty gave them, a 45 day extension to review which puts me at 1/29 for ch7 discharge IF (and this is a big if) it goes through as a 7!!

In all reality, it will most likely be recommended to be converted to a 13 or the ch7 filing will be dismissed.

So, I have a 2002 model vehicle with 96,000 miles on it now which I am still paying on and was planning to keep through the ch7 and after, but now with the real liklihood of being in a ch 13, I would be keeping this car for 5 years, which will pose some real issues for me in terms of maintenance and repair costs to keep it running over that time period.

Question: Do I let them dismiss the ch7 filing and go trade this thing in for something new that has a warranty and all of that, then re-file under 13? My atty said that is an option for me, IF I can find someone who will finance me with a dismissed ch7 and all the debt on my credit report. But, is it even possible to find a lender that will do this??

Any thoughts/info/advice would be GREATLY appreciated!!

[B65]

How long

after the 341 did they file the extension or request the conversion?

B

[elkaholic]

They requested an extension roughly 5 or 6 weeks after the 341 meeting. They have not requested a conversion to ch13...YET, but it is likely that they will, If so, my options will be to go ahead and convert, or let them dismiss the 7 and re-file under 13. The disposable income was around $300/month and I don't see how I can add to any expenses at this point without causing a stir.

So, my concern is the car situation. I do realize the interest rate will not be good and all that goes along with it, but my main questions are:
Is it even possible to get financed right after a dismissed 7, if so with whom, and is this something worth doing or just suck it up and keep what I've got now??

[B65]

I am confused

if you showed $300 disposable income then that is a 13 anyway right? should you not have shown less than $200 for a 7?? I am not sure if you can get financing before discharge but I would certainly try to get a new car with a higher payment then maybe that would send you back into a 7?

B

[elkaholic]

What happened was that my atty did the means test with BOTH of my vehicles included, even though I was surrendering the one with the higher payment, because the judges here in GA are split basically 50/50 on how they rule when it comes to a 7, meaning some judges want everything taken into account on the means test at the time of filing even if you are surrendering something on there, while others will take into account the fact you're letting 1 vehicle go and can therefore afford to be in a 13.

I don't want to confuse anyone with those details, I'm just really unsre of how to proceed and what realistically can be done. I do not like the idea of being essentially locked into a high mileage vehicle for the next 5 years.