Possibility of Auto Refinance after BK?

[ansky0007]

Ok, Here is a different question... My brother is a car dealer and he is willing to give me a $6,000 car he has had on a lot for a while. While I appreciate the car greatly I also owe $10k in taxes this year.

What is the possibility of refinancing the car after he gives it to me so I can use the funds to pay some of my taxes? At the same time it would also be good at re-establishing credit.

I have heard of folks getting loans out of BK, But a refinance right out of BK?

[StartingOver08]

I am assuming that you are talking about federal income taxes and not property taxes.

Don't finanance the car for your taxes. Keep the car with no lien on it.
Just make payment arrangements directly with the IRS.

Believe me, they are easy to work with. You have just filed BK - so they are actually EASIER to work with. They will actually make a very, very easy payment plan with you to catch up. I find it easier to go to my local office and talk with them directly (as opposed to doing it faceless over the phone). The agreement is put in writing, then submitted by the local office to whoever has the final approval. They sign off and send the written agreement back to you. All you have to do is make payments in accordance with the agreement. Much easier than doing the refiance thing. Also, none of your stuff (car) is attached.

I know this because I just did it.

[ansky0007]

Thanks... Yes, I owe $9k in federal taxes for 2008 and $1k for state taxes. I just had my taxes done and since we owe so much we are waiting till April to even file it.

[jeb]

Thanks... Yes, I owe $9k in federal taxes for 2008 and $1k for state taxes. I just had my taxes done and since we owe so much we are waiting till April to even file it.

Hey, why just wait until April? File extensions and take most of the whole year. - jb

[Trixie007]

Hey, why just wait until April? File extensions and take most of the whole year. - jb

Any tax liability is still due and payable by April 15th, even if you file an extension.

[jeb]

Any tax liability is still due and payable by April 15th, even if you file an extension.

Well, yes - but if you DON'T pay it by then you just pay a little more later.

If one will have the money later but not now might be a good trade-off? - jb