Buying a New Car

New Car Student Loans Discharge Bankruptcy Oregon

QUESTION: Can I own or lease a new car and still meet the first Brunner prong?

ANSWER: You can buy a new car and still wipe out your student loans. However, your car must be economical. Avoid driving luxury cars or sports cars.

Be prepared to explain to the court why you need a reliable car to drive to work or take your kids to school. Be prepared to explain why you can’t take the bus instead.

Brunner undue hardship test Oregon bankruptcy courtNew Car Warranty and Mileage

Does your car payment include a warranty plan? Does your car get good gas mileage? These are all questions you should ask yourself before buying choosing the right car to buy.

You should also consider the added expenses of owning a car. Is public transit a smarter choice when you consider your car payment, warranty payment, general expenses and upkeep, gas, and full coverage insurance?