Can I buy a used car before Chapter 7?

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Can I buy a used car before Chapter 7?

I’m going to apply for a bankruptcy soon, I had 2 car reposed, but I need to buy a car. I just got approved to buy a used car, can I buy it? What can happen when i fill for chapter 7? Can it be taken away? Should I wait?

Asked on July 24, 2010 under Bankruptcy Law, Florida

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 11 years ago | Contributor

There's no problem buying a used car prior to filing bankruptcy.  Whether you can keep it or not depends on a number of factors, such as the amount of equity in the vehicle, what exemptions you have available to you under applicable state law (see http://www.bklaw.com/exemptions.html for more information on that), and who you finance the car through.  

Certain creditors, such as Ford and Chrysler, require you to do a reaffirmation agreement in order to keep the vehicle.  This requires you to obligate yourself to make all the payments on the vehicle despite the bankruptcy discharge, and requires a separate court hearing.  Others allow you to simply retain the vehicle and maintain your monthly payments without any additional agreement being filed.

This is a tricky area of law, so you need to consult with a qualifed bankruptcy lawyer in your area.

 

Mark J. Markus, Attorney at Law

http://www.bklaw.com/

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 11 years ago | Contributor

There's no problem buying a used car prior to filing bankruptcy.  Whether you can keep it or not depends on a number of factors, such as the amount of equity in the vehicle, what exemptions you have available to you under applicable state law (see http://www.bklaw.com/exemptions.html for more information on that), and who you finance the car through.  

Certain creditors, such as Ford and Chrysler, require you to do a reaffirmation agreement in order to keep the vehicle.  This requires you to obligate yourself to make all the payments on the vehicle despite the bankruptcy discharge, and requires a separate court hearing.  Others allow you to simply retain the vehicle and maintain your monthly payments without any additional agreement being filed.

This is a tricky area of law, so you need to consult with a qualifed bankruptcy lawyer in your area.

 

Mark J. Markus, Attorney at Law

http://www.bklaw.com/


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