Question...

[jade73]

Going Saturday for a free evaluation with a lawyer. Behind on mortgage so probably going to have to go with Chapter 13. My car is about 10 years old and almost on its last leg. How long do you have to wait about getting anything financed when you file either Chapter. I know I'm probably jumping the gun, going to see a lawyer trying to get rid of debt and talking about getting a car...It's just a question!

[liz417]

It's best to get a vehicle BEFORE you file ch 13 because once you file, you will need the Trustee's approval, etc. Although it's not impossible to get a vehicle AFTER you file, you will be paying pretty high interest rates.

[jade73]

I thought you couldn't file for so many months after you purchased something on credit? Correct me if I'm wrong!

Obviously I cant afford my debts right now, so how's it going to look when I purchase a car? I guess I'm just totally confused...

[justbroke]

I thought you couldn't file for so many months after you purchased something on credit? Correct me if I'm wrong!

That's only for unsecured debt and only where it is not necessities (food, medicine, other living costs), was over $600 in aggregate to a single creditor in the prior 90 days, and was not a "luxury" item.

Purchasing a car is different, as that's a secured debt.

[jade73]

OK so I go out and buy a car tomorrow, talk to the attorney Saturday?

Tell me this isn't right?

Plus I'm thinking our credit sucks so bad that we couldn't even get financed right now. I'm so frustrated!

[justbroke]

OK so I go out and buy a car tomorrow, talk to the attorney Saturday?

Talk to your attorney first, and ask him if you should replace the car first. The attorney will be working on your Plan and needs to deal with money issues. Whether your payment will fit in the plan... matters.

[jade73]

Oh ok, so just tell him that we need a car and see what he says?

[justbroke]

Oh ok, so just tell him that we need a car and see what he says?

Yep, that's what you pay them for... legal advice.

[liz417]

Oh ok, so just tell him that we need a car and see what he says?

I know it's a hard concept to grasp, we were the same way a year ago when my 1st attorney (at the time, we thought we would be a ch 13) told me to go out and get a new car! Here were were, broke, juggling bills, maxed out, finally decided to file BK and told to get a new car!

[jade73]

I know it's a hard concept to grasp, we were the same way a year ago when my 1st attorney (at the time, we thought we would be a ch 13) told me to go out and get a new car! Here were were, broke, juggling bills, maxed out, finally decided to file BK and told to get a new car!

So you went out and bought a new car?

[liz417]

So you went out and bought a new car?

I felt too guilty, so I bought a good used economical one with 20k miles Then my attorney tells me that I should have bought something nicer because my monthly payments were too low ($280) and we were trying to get rid of DMI! At the time, I knew nothing about BK and didn't know I was purchasing a car to lower my DMI.

[zpbk13]

My husband and I did buy a new vehicle after talking it over with our attorney. We told her that Saturn was offering either 0 down and 0 interest or $500 and 1.9%. We also initially thought we were going to be a 13. I am not so sure I would have bought a new vehicle even with the great interest rate and low downpayment if I would have known we could a 7.

[jade73]

I felt too guilty, so I bought a good used economical one with 20k miles Then my attorney tells me that I should have bought something nicer because my monthly payments were too low ($280) and we were trying to get rid of DMI! At the time, I knew nothing about BK and didn't know I was purchasing a car to lower my DMI.

I guess I'm still having a hard time grasping this. If you stop paying your creditors, you're credit score is going to bottom out. How in the world do you go get a car financed?

[justbroke]

I guess I'm still having a hard time grasping this. If you stop paying your creditors, you're credit score is going to bottom out. How in the world do you go get a car financed?

Presumably, you get the car, just as you stop paying the unsecured creditors.

[jade73]

Off to see the Lawyer...wish me luck! I'm sooooo nervous!