Filling Bankruptcy and need to purchase a vehicle in which I intend to keep?

in Bankruptcy

AlBundy asked:

Will the Bankruptcy court still allow me to file? I am not planning on purchasing TV’s and Furniture, just a vehicle for work.

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3 comments

Pam on May 31, 2009 at 7:33 am

Generally the courts expect you to have transportation so you can get back and forth to work.

They won’t expect you to have anything extravagant.

I’d suggest scheduling a consult with a bankruptcy attorney. Usually they will do the first meeting for free and answer your basic questions.

The bankruptcy laws changed a couple of years ago so it is best to talk with someone in the biz.
magic_ice_man1 on June 1, 2009 at 5:20 pm

Anything you purchase on credit in the 6 months prior to filing bankruptcy can be challenged by the court. I wouldn’t do it if I were you.
Michael J. McCulley, Esq. on June 3, 2009 at 11:57 am

This is a somewhat complex question, and I do not have all of your facts. The answer depends on whether you are filing for Chapter 7 or 13 relief. If you buy the vehicle prior to filing, you will have the choice of whether to retain or surrender it. If you buy it after you file, and before you get a discharge, such as in the case of a Chapter 13, then you will need the court’s permission. However, the argument can be made that you need the vehicle for an effective reorganization.

The other person who said that the bankruptcy court can undo transactions prior to filing is partially correct. However, in this case, since you want to keep it, you aren’t trying to get a discharge from the debt, so that shouldn’t be an issue for you.

Please contact me if you would like to discuss this matter further. I recommend you get an attorney to discuss the particular facts and circumstances of your matter.

-Mike McCulley