Car Lease and Reaffirmation Question

[lperez1170]

Hi! I am new here...just had our 341 meeting on March 8th. Officially in the 60 day club...yahoo!!

I have a leased Honda Accord which we have decided to not keep because we are over the mileage and I would prefer to own a car. I have a year left on it and have been making payments on time. I have a dealership nearby that is willing to get us in a car before our discharge letter, but their interest rates are 15-17%!!! I am disgusted. So, do you advise that I wait until I get my discharge letter and go to a dealership and will Honda come and repo the car if I don't sign a reaffirmation agreement? Do any of you have experience with buying a car right after the discharge letter and what type of rates were they offering?
Thanks for your help!!

[AngelinaCatHub]

First 'lp70', you aren't supposed to go into new debt while in bk and before discharge. You could throw a wrench into the works.

Yes dump the car and at this time, there are many good used cheap cars out there.

You are bankrupt, and now is the time for you to get used to it. Frugal living and a junker you could afford to get you to work (if you have any) and could leave on the side of the road if you had to.

We once had money, we now are broke. We now have very little stress, owe no one, and can get by on cash only.

Is money success, or is freedom? I vote for the latter in that I own less toys or junk but my values have increased. 'Hub

[lperez1170]

Well, my attorney never said that I shouldn't get a car loan and told me that it wouldn't be an issue either way as far as the trustee is concerned. I would love to get a car that I could care less about dumping at the side of the road, but not with kids...I really need something more reliable than a junker! If it was just me alone that would be a different story. Additionally, I don't have the cash to even do that at this time.

I plan on living a cash only lifestyle but with a reliable mode of transportation!

My questions still haven't been answered...so I would appreciate if anyone else can help me out!

Thanks!!!

[BKDefender]

lperez1170: There's no legal or trustee problem with buying a car in the middle of a chapter 7 bankruptcy. With a chapter 13 you can't without trustee/court approval though. The 15%-17% loan is about right for in-bankruptcy and immediately following bankruptcy loans, so don't be surprised. If you can afford the leased Honda right now, you might consider continuing with the lease for another 6 months or so until your credit improves and the dealer will sell you a car with a decent interest rate.

--William