Auto Loan before discharge?

[sh9730]

Hello all,

Hopefully my questions will be less and less as I get closer to discharge (on day 21 of the 60 day club now!), but here is another Im trying to confirm my lawyer's advice. He has been good enough (not great) so far, but I thought I had read contrary information here so....I thought I have seen this question here before, but cannot find the threads? Thanks in advance!


I have decided to likely turn in my leased automobile (had originally intended to keep and filed paperwork as such). As such, this car can be repo'd (auto stay lifted) at 45 days after the 341 right?

SO, there is that little time period between that 45 day mark and discharge where I could be in trouble with no car. I was getting bombarded with offers from dealers saying they will get me a loan BEFORE discharge, so I checked with my lawyer today and he says no problem getting a new car loan prior to discharge and said nothing about court approval needed or anything.

Putting aside the financial issues of being able to get a better rate after discharge etc...from a legal standpoint does anyone have information this is BAD advice from my attorney?

[debee]

So long as you don't secure a new loan with property of the estate, it's not against the rules. Chapter 13's can't borrow during the pendency of their cases without court approval, but chapter 7's can.

[sh9730]

Thanks Debee for both the answer and the PM link. Perfectly on point! My attorney did good on this one. SO, I still think I will try and wait until after discharge if possible (maybe they wont repo the car on day 46!) as from what I read there are more options of lenders which means better rates, and of course I am still considering the "junker" option.

But at least Im comfortable that this is a legal option should I desire.

Thanks again.

[debee]

Thanks for the thanks.