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Need to buy a car - timing?

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    Need to buy a car - timing?

    My current vehicle is paid for, but is falling apart. NADA blue book on it is about $1200. The AC is non-functioning (very important in Texas summers) and the transmission is having issues. My mechanic says it might last a couple of years, but could completely break any day.

    My sister currently has a small pickup that doesn't suit her needs. She went to a dealership last week and they offered her $1200 on it as a trade-in. Knowing that I'm in need of a vehicle, she offered to sell it to me for the same amount. Blue book on it is over $4K which is the exemption limit here, so I can't go into a bankruptcy filing owning that vehicle.

    What I'd like to do is sell my car for what it'll fetch as-is, which won't be much, then buy my sister's truck. I'll have the cash to make that happen by the end of the week (which is exemptable). We're looking at filing before the end of the month, probably next week sometime. How soon after filing can I buy a car? Is that permissible the day after, or after the 341, or do I have to wait until after discharge?

    #2
    I would not do any of this until after your 341 at the earliest. It may be a non issue but you are looking at transferring money to a family member. That would at the very least be some kind of preferential payment.

    What we did (and your mileage may vary) is give up our cars. The bank let us turn them in after the 341. My wife took a loan on her 401k and we bought cars for cash after that. Our case closed yesterday without issue. I think some of this depends on your Trustee. If you have an attorney... Consult him/her. S/he should know for sure.
    9/30/09 * Filed Ch7
    11/9/09 * 341 - Uneventful
    1/11/10 * Closed

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      #3
      My car is paid for, my wife's car has only 4 more payments before it's done. We don't have the cash to replace both right now. Since mine is a time bomb, giving up her car in the bankruptcy is not an option.

      We have an appointment with the lawyer next week for final review and signing, I'll get his opinion then.

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