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  • Pittsburgh: 412-391-8000
  • Erie: 814-451-1131
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Blog

Buying a car and Chapter 7 bankruptcy

Posted on October 21, 2013 by Kenny Steinberg

Chapter 7 is what people think of as a “traditional” bankruptcy. You can find a wealth of information on Chapter 7 on our website. Check out the videos also.

Losing a vehicle in a bankruptcy is rare. You will not lose your car, truck or motorcycle in a Chapter 7 bankruptcy proceeding unless we have told you this before you have agreed to file a Chapter 7. More on this can also be found on our website.

I was prompted to write about this this after reading a recent article in the Erie Times-News regarding consumers having the upper hand when purchasing cars. It was 1962. I was 10 years old, and I went with my Dad and Mom to the Chevrolet dealer to order our first new car. Ever.

We walked into the showroom. What a sight! Eight shining cars, different models, and I was allowed to climb inside and sit behind the wheel of every one. It was magical. I opened the door to the low-level Chevy II first, because I didn’t feel worthy enough to disturb the Impala Super Sport Convertible or, yes, the Corvette.

Then I summoned the nerve to enter the Super Sport Convertible. The outside was gleaning Ermine White. I had no idea what an Ermine was, but it must have been something, because here was one of my dream cars in the same color.

I fell into the bright red vinyl bucket seat and grabbed the steering wheel. Then I allowed my hand to fall on the gear shift lever between the seats. Yes, between the seats. That was extremely rare then, but virtually all cars are like that now.

Then the salesman drew my folks into this little room and I followed. I knew we weren’t getting the Super Sport – not my dad’s style, and certainly not enough income for us to splurge. But the mid-level Bel Air was just our speed, a four-door sedan in, yes, Ermine White with a bright red interior. Not a Super Sport, but it was new, the Steinberg’s first new car!

We looked at the option list. Automatic transmission, yes. V-8 engine, no – we’d get by with the six-cylinder. AM radio, yes. Rear speaker, no. Power steering, yes. Back then, some big cars didn’t have this. Today, of course, even cars no bigger than my desk have power steering. And a heater, yes also. Heaters were not standard equipment on all cars back then. I mean, who needed a heater in Florida?

Total list price? $3,200.00. Discounts? $700.00. Price to us? $2,500.00.

I don’t know if my Dad financed the car back then – at 10 years old, it wasn’t on my radar. But I now know that if a car was financed it was generally for three years or less. Five or six years? Unheard of.

The car was ordered and six weeks later we received a call: it had arrived! We drove to the dealer, said goodbye to our 1956 Pontiac, and drove home in our brand new Chevy. It smelled wonderful, and I hoped all of my friends were outside looking as we rode up Stanton Terrace.

Owning a car, new or old, is a special feeling. But if you are in financial trouble, it doesn’t mean you will lose your car. That’s what we will help you with.

You may, or may not have looked at your first car in the way I did, but if you are considering filing, or not filing for bankruptcy, and you are worried about your beloved car or motorcycle, don’t let your fear of losing it stop you from calling us. Your fear is most likely not warranted. Unlike your car, which may indeed have a warranty.

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