Vehicle Purchase Question

[businessisbad]

I am going to be filing corporate and personal bankruptcy very soon as I have depleted all of my personal savings to keep the business afloat. I met with what seemed to be a reputable attorney. Here is my question. I currently have excellent credit, FICO above 730, the attorney asked me what my vehicle situation was. I advised him car has a little over 80K miles and starting to give me problems.

The attorney then advised me to go buy a vehicle, while my credit is still intact, and re-affirm the loan later. Wouldnt the lender just want the car back? Is this legal/ethical?

Since I will have no debt after the BK affording the car will not be a problem I just thought this seemed an odd thing for legal counsel to advise.

[TEW]

They will not want the car back if you keep paying for it.
You may not have to reaffirm the loan either it will help your credit latter if you do.
Don't finance it with a bank you have any other accounts with.

[businessisbad]

Thank you for the reply. If I trade in my current vehicle, which is paid off and valued at approximately $7K, would this constitute a preferential transfer of asset?

Thanks.

[santadawg]

no your good

[albacore44]

1st attorney i consulted said the same thing. I also thought it sounded very odd. but I understood the reasoning.so I bought a new one a month ago.

[liz417]

I was advised the same thing. We purchased a good used vehicle to replace our '95 with 240k miles on it.

Good Luck!

[danaf]

It is sound advice. And it will help you on your means test and schedules. I purchased a new car a year out from my bk.

I personally wouldn't reaffirm a vehicle BUT if you buy it on the eve of bk, then yeah - you would have to reaffirm it or they could object to your bk.