This is long, so please bear with me:
As some of you may know, earlier this week, my wife and I retained an attorney. During our consultation, the attorney advised us to go and buy a new car before we file Chp.13 because I currently drive a 12 year old Cavalier with almost 190,000 miles on it. She instructed us to get one because I drive 100+ miles a day for work. She felt that my car would not last another 5 years and according to her, we would not qualify or be able to get a car loan in the next 5 years while on a repayment plan. Currently, my wife has a 05 Mailbu with 60,000 miles and we owe about $11,500 on it. She travels for her job as well. The attorney said that according to Kelley Bluebook vaule, the Malibu is only worth $5500 and she can get the car refinanced to that value during the bankruptcy.
I feel very uneasy about making a purchase such as a new car. She gave us the card of a local honda dealer she knows who works with people that are about to file bankruptcy. We went to the dealer today and he wanted to put us in a certified honda accord for $17,995 at 30,000 miles. He said the car payment would be at $350-$375 a month most likely. He also said the interest rate would be 25%, but that wouldnt add correctly with the car price and the projected montly payment. It had a sizeable dent on the side of the car and had been slightly rear-ended. We declined to purchase the vehicle and my wife and I felt that he was extremely predatory in his sales tactics since he knew we were filing bankruptcy. The man told us that we are in no condition to haggle price or look around. We needed to buy the car today, because we might not qualify monday due to compounding interest on our bills. We havent been late on anything yet, just high debt to income ratio. In his own words, he said we "need to #$%^ or get off the pot."
I plan on letting the attorney know what we think of him.
My questions to everyone:
1. Should I purchase a "new" used car right now or not?
2. Has anyone been successful at purchasing a new vehicle in the middle of their chp. 13 repayment plan?
My wife is starting to have doubts about getting one and so am I (I am a tight wad as it is), but my current vehicle will not last much longer. We found a 2006 ford for $15,000 at 20,000 miles. Im unsure though because it feels sooo wrong to purchase a car right before you file bankruptcy, but our lawyer instructed us to do it. My wife thinks she might be trying to up our secured debt in hopes of putting us into chapter 7 since we failed the means test, but I dont know.
Thoughts everyone?
As some of you may know, earlier this week, my wife and I retained an attorney. During our consultation, the attorney advised us to go and buy a new car before we file Chp.13 because I currently drive a 12 year old Cavalier with almost 190,000 miles on it. She instructed us to get one because I drive 100+ miles a day for work. She felt that my car would not last another 5 years and according to her, we would not qualify or be able to get a car loan in the next 5 years while on a repayment plan. Currently, my wife has a 05 Mailbu with 60,000 miles and we owe about $11,500 on it. She travels for her job as well. The attorney said that according to Kelley Bluebook vaule, the Malibu is only worth $5500 and she can get the car refinanced to that value during the bankruptcy.
I feel very uneasy about making a purchase such as a new car. She gave us the card of a local honda dealer she knows who works with people that are about to file bankruptcy. We went to the dealer today and he wanted to put us in a certified honda accord for $17,995 at 30,000 miles. He said the car payment would be at $350-$375 a month most likely. He also said the interest rate would be 25%, but that wouldnt add correctly with the car price and the projected montly payment. It had a sizeable dent on the side of the car and had been slightly rear-ended. We declined to purchase the vehicle and my wife and I felt that he was extremely predatory in his sales tactics since he knew we were filing bankruptcy. The man told us that we are in no condition to haggle price or look around. We needed to buy the car today, because we might not qualify monday due to compounding interest on our bills. We havent been late on anything yet, just high debt to income ratio. In his own words, he said we "need to #$%^ or get off the pot."
I plan on letting the attorney know what we think of him.
My questions to everyone:
1. Should I purchase a "new" used car right now or not?
2. Has anyone been successful at purchasing a new vehicle in the middle of their chp. 13 repayment plan?
My wife is starting to have doubts about getting one and so am I (I am a tight wad as it is), but my current vehicle will not last much longer. We found a 2006 ford for $15,000 at 20,000 miles. Im unsure though because it feels sooo wrong to purchase a car right before you file bankruptcy, but our lawyer instructed us to do it. My wife thinks she might be trying to up our secured debt in hopes of putting us into chapter 7 since we failed the means test, but I dont know.
Thoughts everyone?
Comment