Buying new car prior to filing bankruptcy

[Minnymouth]

If you trade your old auto in on a newer one and have little equity in it - then reaffirm on it also - the truste will not bother it....
Just make sure that lien is on that title before you file bankruptcy or the court will seize the auto.......

Minny

[11usc362]

there are no prohibitions to you purchasing a car before filing, this is very common as it may become more difficult to purchase after you file. The only issue is if you pay for the car outright, you may not be able to exempt it. If you finance the car, you can reaffirm it to keep it.

[SinkingFast]

Don't buy the car unless you are still current on other debts as well.

We wanted to refi our truck, and do a cash out on the equity to pay our income taxes. Attnys told us, if we did the refi without having stayed current on our other debts, the attnys said they would have to file us as a Ch 13. If the attnys tried to file us as a Ch 7, the Trustee would go after them, fine the attny, and force us into Ch 13 anyway.

So be very careful about buying a newer car. Make sure if you do, you are current on ALL your debts at the time you finance the vehicle.

[gak555]

Sinking Fast:In reference to your response below:

Yes, the Trustee has to pay you your exemption amount on the car if he/she siezes it to sell. Chances are, if the car is older, higher mileage, the Trustee won't take it. He/she will just figure an amount their happy with and let you buy it back from the Court. In payments over, say a year, of course.

The Wildcard only applies IF your State exemptions have one OR if you're allowed to take the Federal Exemptions. Not all States have a Wildcard allowance. Very few States allow the Federal exemptions.

THEY WILL LET YOU BUY IT BACKAND DO IT IN PAYMENTS ? I THOUGHT YOU HAD TO COME UP WITH THE MONEY ALL AT ONCE.

[SinkingFast]

Well,........ I don't know from experience, but, that's what all the attnys here have told us. That the Trustees will take payments.