new car?

[alpine]

I wanted another opinion on this one.

background -
My wife and I are about to file jointly, just not sure yet if we will qualify for 7 or 13. My wife stopped working when we had our kids but did not lighten up on the spending. fast forward to now and she is way behind. Because we are married her lawyer was worried they would start coming after me as i make the money so it was recommended we file together. while I am OK with this as we are over our heads, I was not sure what to do on my car. i have a lease that is up in 7 months, and I have great credit right now. I know in 7 months I will not be in the best credit shape for a new car, so I was looking to get a new car today and stop payments on the lease. I am able to get a new car at 0% for 60 months, but i am worried about how this might look.
with my job I take clients out so I need a nicer car, but I am going to go from a Saab to a subaru so it does not sounds as bad.

Question- anyone see an issue with this fomr what they know? When I get the new car and they see I have the other loan should I tell them anything?
(I have 2 car loans now, mine and my wife's van)
we plan on keeping payments on the Van as it only has a year left and is in great shape.


thanks for any advice you all have.

[liz417]

Hi Alpine, welcome to this board.

My attorney recommended that we get a new vehicle before we file for BK (ch 13). Rather you file for ch 7 or 13, you will need transportation and you will need to get a new (or good used) before your credit takes a hit. You can include the deficient car balance (your old lease) in your BK. Will your wife's van last 5 more years if you need to file a ch 13? Something to consider.

Good Luck!

[alpine]

Hi Alpine, welcome to this board.

My attorney recommended that we get a new vehicle before we file for BK (ch 13). Rather you file for ch 7 or 13, you will need transportation and you will need to get a new (or good used) before your credit takes a hit. You can include the deficient car balance (your old lease) in your BK. Will your wife's van last 5 more years if you need to file a ch 13? Something to consider.

Good Luck!

thanks for the fast reply!

I had just talked to another advisor and also got the same answer so I am going to get the new car (they are washing it now, man is the car industry hurting too)

I think the Van will be fine for about another 4-5 years (it is only 4 years old now). I plan to pay the same amount towards it now that I have been so we are on tract to have it paid in less than a year. I am not sure if I can get 4 auto loans on my credit at one time (I will have the van, Subaru, and Saab on there before I file)
my understanding is that after the bankruptcy (if 13) we will have a set amount allowed for payments, so if we had to get a new van we could show the amount and would be more likely to get a loan.

I am sure many people never thought they would end-up like this, I am just glad we have a choice and I am learning to pay more attention to our family accounts, not just mine.
I do feel very guilty about this though, I never have liked to get something for free. I know it is not free, but debit write off feels that way to me.

[gettingby2008]

We were told that when our car loan is paid off during our 13 the trustee could increase our payment to take the excess money. We just purchased a new car as well and we surrendered our lease on Friday. Now we wait to file the 1st of the year.

[AngelinaCat]

Hi Alpine. Welcome to the forum. You already have gotten good advice so I really can't add anything, other than this one:

If the Missus stopped work to stay home with the children, and her income was a significant part of the household income, she needs to kill her spending habits. "My wife stopped working when we had our kids but did not lighten up on the spending. "

I think there is a lot of homework that needs to be addressed here that does not involve automobiles.

Good luck to you.