Car question!

[momto4]

So we went to the lawyers on Saturday and gave the last of our paperwork and paid, they said it would be filed in 3-5 days. A load of the shoulders, first hurdle done!

Now my husband just called and told me his truck that he thought he would pay $100 to get the brakes fixed wound up being $469 because something else was wrong. He is so p'oed because he has put a lot of money into the car. He bought it as a fixer upper a few years ago but since our financial situation took a nose dive, we haven't had the extra money for it. He now wants to sell it. He put it on craigslist and got a lot of response. I told him to take it off as we couldn't do anything while in the middle of this bankruptcy thing. They already figured out and asked how much the car was worth.

So now, he is determined to sell it and just get a regular car. But now our credit is shot to heck and we can't go get a car with payments unless we go to one of those "we finance anyone" places. Or he will just have whatever he gets for his truck to put toward a car.

I guess my question is what would be the best resolve? Are we allowed to do anything right now? What happens if the truck goes kaput? We absolutely need 2 cars.

[BKTango]

Are you filing CH7 or 13? If CH7 are you an asset or no-asset case? The reason I ask is you simply cannot...absolutely not take on any new debt/credit while in an open BK, you cannot sell anything as it is now property of the BK estate without the trustee's permission. If you are a CH7 no asset clear cut case, my best advice would be to just wait it out the few months you will be in open BK. If it's a CH13 you better discuss this with you attorney and trustee. Bottom line you sell a vehicle, that is known to be property of the estate...that's not only a big no-no, but you now have funds that can be turned over to the trustee.

[momto4]

Are you filing CH7 or 13? If CH7 are you an asset or no-asset case? The reason I ask is you simply cannot...absolutely not take on any new debt/credit while in an open BK, you cannot sell anything as it is now property of the BK estate without the trustee's permission. If you are a CH7 no asset clear cut case, my best advice would be to just wait it out the few months you will be in open BK. If it's a CH13 you better discuss this with you attorney and trustee. Bottom line you sell a vehicle, that is known to be property of the estate...that's not only a big no-no, but you now have funds that can be turned over to the trustee.

We are filing chapter 7 with assets.

[lrprn]

We are filing chapter 7 with assets.

As BKTango already said, after filing and before your case is closed, you cannot sell an asset or take on new debt without your trustee's permission. No exceptions....even an angry husband tired of dumping money into his fixer-upper!

Call your lawyer and discuss this with him/her immediately. Do NOT allow your husband to sell the car - he could cause your case to be dismissed....it's that serious.

[Spartan]

The alternative is to instruct the lawyer to hold off on filing, till you have replaced your vehicle....

[CATCHMEIFYOUCAN]

After I retained my lawyer, my car got flooded, my lawyer told me to buy a new car BEFORE I filed. Well it was 30 days before I filed. I got myself a new car with 9.99% interest rate, I know I could have done better BUT my credit was going down hill anyways, get yourself into a new car before you file!

Catchmeifyoucan