Legal Question in Bankruptcy in California

Chapter 13 / Need Car

We are in California and have put

ourselves into a tough financial

situation. We have two inoperable

cars and no way to afford the repair

costs. We need vehicles to get to

work (have been borrowing them).

We still have decent incomes, would

like to keep our home even though

it's valued slightly under what we

owe. We think our only way out is to

file chapter 13 since we have no

equity to draw upon ($34k in Credit

Card debt, $40k 2nd, $318k first - no

car debt). House value $320k?

Income $9700 per month.

Question - should we try to purchase

another car (probably like a 15%

interest rate for 5 years) ? Would

this look like fraud? We want to pay

everyone, we just are unable and a

car is a must - we cannot keep our

loaned car forever.


Asked on 11/07/08, 7:38 pm

1 Answer from Attorneys
Phillip Lemmons, Esq. Phillip Lemmons APC, Attorneys at Law

Re: Chapter 13 / Need Car

If you can't pay your current loans, it's probably a bad idea to take another one. Maybe you should use your income to repair the vehicle rather than servicing your debt.

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Answered on 11/08/08, 4:50 pm


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