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I need to buy a used car to get me to work and college. My question is if I can buy a car and not affect the status of my discharge or cause this car to be included in filing. Keep in min that i file a while ago and already have met with creditors in addition I already have made the payment in full for my assets restitution. Thanks
The car I want to buy is for cash, no loans.

2 Responses to “Buying a used car before a Bankruptcy relief?”

1. skunkpayne on May 9th, 2009 5:10 am

   If for cash, do it to it. No credit yet.

2. rlloydevans on May 10th, 2009 2:39 pm

   You cannot buy on credit – because anyone who gives you a loan before the bankruptcy is completed would lose their loan. No one will give you a loan if you tell them, and failing to tell them is a major fraud. SO if it is credit you MUST wait until the bankruptcy is discharged.

   For a cash purchase this is a little more dicey. If you obtain an asset before the bankruptcy is discharged the asset then can be used to pay off creditors. If all of the creditors were paid in full, then no problem – but if any of them were paid less than owed then they could petition the court to liquidate your asset to pay them.

   That said – generally you are allowed to keep a car as your personal property during the course of a bankruptcy, so you PROBABALY would be okay. But you should :

   1) Consult with a good bankruptcy attorney before you take this action to see how it would effect your current bankruptcy, or

   2) Wait until the bankruptcy is discharged.

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