Will the trustee take a new car after BK if paid off?

[debtmonster]

If you file a Ch. 7 and get discharged and then 3 or 4 months later you buy an $8,000-$10,000 car for cash, can the trustee come after it if it's within 6 months or do they only come after things like an inheritance or property?

I know you can finance cars because they have a lien, but what if you were able to get a large sum of cash from friends or you ended up getting a good paying job making $5,000/mo. after the bankruptcy was done?

What do the trustee's look for during that 6-month period after you're discharged?

I would hate to get something like a 2005 Honda Civic for $8,000 only to have a trustee contact me to give it to the court and then I'd have to go out and get some $1,000 junker with 100,000 miles that starts breaking down until after the 6-month window.

It would be nice to see a bullet list of things you can and can't do during that 6 month time.

[fltoo]

You can make a million dollars in salary or win the lottery and you will not hear from them once it is closed.

I think it's only inheritance and life insurance proceeds where they can reach into the future?

[debtmonster]

That's not what I heard. I think if you win the lotto, they will snatch that money.

I've been looking at cars under $3,000 on here.

For what those people want, THEY ARE SICK!!! Like old 1984 rusty cars with 120,000-160,000 miles for $2500-3000. I wouldn't give $500 for those old junkers that are all ready to fall apart.

And on Auto Trader, there's nothing worth taking home for 2002 to 2009 for $3500 or less with under 75,000 miles.

This is getting to be VERY depressing. All the good deals out there appear to be scams. And then when you find a cheap car on AutoTrader for $2500, then you click on the ad only to find it say, "$2500 DOWN".

[fltoo]

Don't know, might depend on the district. Here in middle district, my lawyer said they won't go after lottery winnings, just inheritance and life insurance proceeds.

[keepmine]

http://doney.net/bkcode/11usc0541.htm

[TEW]

You can make a million dollars in salary or win the lottery and you will not hear from them once it is closed.

I think it's only inheritance and life insurance proceeds where they can reach into the future?

NOT true if that happens they will reopen your case and take the money. 180 days after the case is closed.
But for OP no they will not take the car

[fltoo]

I think it is true, TEW.

[debtmonster]

I hope I can buy a car after the BK and not have any problems then.

I was on Auto Trader Classics and saw some beautiful Fiat convertibles on there for $1500-4000. My father said that the problem with those cars is finding replacement parts. But for $1500 I could be driving a sweet Fiat!!

Check this car out and tell me if it would be a cool looking car for $1500.

[TEW]

I think it is true, TEW.

Doesn't matter what you think it matters what the code says read the posts above

[fltoo]

Ah, I see KM found the code and yes, what my attorney said is true. Inheritance, ins proceeds and of course anything that was in place before discharge. So, making the million dollars and lottery winnings are something that the trustee probably cannot go after.

[TEW]

Ah, I see KM found the code and yes, what my attorney said is true. Inheritance, ins proceeds and of course anything that was in place before discharge. So, making the million dollars and lottery winnings are something that the trustee probably cannot go after.

nope you are wrong again. try doing a search it's been talked about.

[fltoo]

No search necessary, Keepmine found the code that outlines what is in the 180 day period.

[debtmonster]

Why can't they put examples in code like that so it makes sense. The wording they always use in legal documents is never in layman's terms. Why?!?!

[keepmine]

NOT true if that happens they will reopen your case and take the money. 180 days after the case is closed.
But for OP no they will not take the car

Please post the section of the bk code or applicable caselaw that gives the trustee the authority to take lottery winnings or reopen if you get a high paying job.
There just comes a point when it's over. That's the purpose of discharge and closing-with the 3 exceptions that the code specifies.

[OhioFiler]

Please post the section of the bk code or applicable caselaw that gives the trustee the authority to take lottery winnings or reopen if you get a high paying job.
There just comes a point when it's over. That's the purpose of discharge and closing-with the 3 exceptions that the code specifies.

Paragraph 7)

(7) Any interest in property that the estate acquires after the commencement of the case.

I assume this would apply to lottery winnings IF the ticket was purchased while the case was still open. Otherwise, I agree. The regs are quite specific regarding what they will take in the 180 day period.