Can I buy a used car before Chapter 7?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
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 13 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 13 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/
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.