we have decided to file bankruptcy can i buy a used car before doing so?
cluelessone asked:
We have decided that we have to file bankruptcy after i have been out of work due to a medical illness. We had bought a new house before this happened and got so far behind that we have to surrender the house now. I am now back to work and one car isnt working since my husband and I have to travel out of town for work. Is it ok to buy the car before filing Chapter 7?
We have decided that we have to file bankruptcy after i have been out of work due to a medical illness. We had bought a new house before this happened and got so far behind that we have to surrender the house now. I am now back to work and one car isnt working since my husband and I have to travel out of town for work. Is it ok to buy the car before filing Chapter 7?
Yes. It is better to buy it before the bankruptcy. You are allowed to have personal property and a car is considered that in a bankruptcy. However you will have to continue to pay the payments after the bankruptcy. Also, a lawyer may tell you that you need more debt to file bankruptcy, so go buy a car. This is what happened to my husband a few years ago. Although he told the car dealer his plan to file bankruptcy and they didnt care, I wouldnt advise it to anyone else.
Comment by marlenekay4 — November 9, 2009 @ 12:33 pm
As far as I know, if you increase your debt (ie buy a car) and then file bankruptcy immediately, the court can say that the purchase was fraudulently made. You have to have no credit purchases for a certain amount of time before you file if you want them to be discharged. Check with an attorney in your area. Bankruptcy laws are tricky and you’ll need help!
Comment by cindy_lu_who2000 — November 10, 2009 @ 2:29 pm
no. not unless u r buying a clunker, if you spend more than 500-600 the court is going to want to know where the cash came from, and if it has lots of equity say 5000 they may take the car to settle some of the old lenders claims, if u r adamaent about buying a good high value used car and you have cash u better number 1 make the cash disappear out of your name long before u file bk, and 2 consider buying in another family members name or the court will find it, no car over 1000 rite f4 filing chapter 7
Comment by donald e — November 13, 2009 @ 1:13 am
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