Buy a new car to qualify for Ch7?

[Klesko]

I would be very careful doing this right before filing. If it was say 6 months before I would feel better about it. You can increases your expenses other ways.

$489 is the standard amount, anything over can cause a red flag.

[OhioFiler]

Although I probably shouldn't comment on this post OhioFiler, since I have berrymom35 on my permanent ignore list, but I do think that appliances would be seen differently by the trustee than a luxury car.

They took on debt 2 days before they filed. Unless they decided to file the day after purchase, completed their schedules that evening and filed the following morning I'd say they took on debt knowing they'd be filing in 2 days.

[backtoschool]

They took on debt 2 days before they filed. Unless they decided to file the day after purchase, completed their schedules that evening and filed the following morning I'd say they took on debt knowing they'd be filing in 2 days.

Oh, an AP is definitely a risk for the appliances I agree.

[debtinohio]

Interesting. I don't know that I guess luxury is subjective. A 40k car would go a long way to get me to pass the means test. I drive a VW GTI now, car costs $28k. I make over $100k/yr, not sure if taking on a car thats $12k more is excessive, but I realize thats up to the UST and it could be shaky grounds. There are alot of pickup trucks with extended cabs that cost more than $40k.

Yeah, my cloth seats, no navigation, 2009 Dodge Ram 4x4 Crew Cab was $42,000...of course, since Dodge is in Ch11 (the irony) it's final price was $28,500, lol.

[Bell30656]

When I first began interviewing attorneys (free consultations) most of the lawyers told me that I didn't qualify for CH7 and would be in CH13. Then I ran into the attorney that I actually used. His approach was different. He advised me that I needed a more reliable vehicle. When I asked why, he shrugged and said $400 to $450 more reliable per month. Then he told me not to get any raises or make any bonus for the next three months. Finally, he told me not to make any credit card purchases for the next three months.

Bewildered, I was full of questions. He handed me back a stack of paperwork, told me to bring them with me to my November appointment with 3 months worth of pay stubs, bank statements, etc.

While he didn't tell me the reason why, I found the answer on here and in the schedules that I used when playing with a trial version of bankruptcy software that was the same as what he used. I was over the means test by just a little bit. The car payment was enough to fix it.

[shabam]

Interesting. I don't know that I guess luxury is subjective. A 40k car would go a long way to get me to pass the means test. I drive a VW GTI now, car costs $28k. I make over $100k/yr, not sure if taking on a car thats $12k more is excessive, but I realize thats up to the UST and it could be shaky grounds. There are alot of pickup trucks with extended cabs that cost more than $40k.

$100k is already going to raise red flags. I would not be adding more fuel to the fire.

[whipster1]

Yep 100K will get the UST in a lather to begin with, although many get through the scrutiny just fine...the new car won't go over well, but worst case scenario they convert to a 13.

[TooMuchCredit]

Yep 100K will get the UST in a lather to begin with, although many get through the scrutiny just fine...the new car won't go over well, but worst case scenario they convert to a 13.

Even in a 13 they might object to a payment above the $489 standard, especially if the amount paid to the unsecured is small.

You'll possibly be faced with a "good faith" objection from the trustee.