If I recently took our a loan for a motorcycle as an alternative means of transportation, am I going to still be able to file for bankruptcy?
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If I recently took our a loan for a motorcycle as an alternative means of transportation, am I going to still be able to file for bankruptcy?
I plan on filing bankruptacy within 3-6 months to discharge a judgment that I owe to a previous landlord/leasing company. I am not trying to discharge this loan and get off scott free. I would like to reaffirm the debt and make all monthly payments on time for both my car and motorcycle. Will having a new loan be an issue?
Asked on January 21, 2015 under Bankruptcy Law, Pennsylvania
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
Your bankruptcy will be questioned quite exstensively because of this new loan. The court will ask you why you took out a loan so close to filing bankruptcy instead of using the proceeds to pay off a previous judgment. Reaffirmation of debt is not automatic. It will require the lender to agree. You should consider meeting with an attorney to find alternatives to bankruptcy and the likely outcome of each route.
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