Legal Question in Bankruptcy in Arizona

We need to finance a car, but are going to be filing bankruptcy soon. They say we can have up to $5000 in equity in the car. If we borrow from a friend to pay for rest of the car, is that the same as borrowing from a finance co/bank? Will that raise any red flags?


Asked on 9/03/10, 11:35 am

1 Answer from Attorneys
Jack Hall Hall Bankruptcy Services

This issue comes up more than you might think. However, your specific question raises some issues that make it impossibleto answer without knowing more facts. There is a way that you can work this so tht you can exempt the vehicle's present fair market value, but there would ahve to be a valid security agreement involved. I can help you with this but it might be easier to talk about on the telphone. I will not charge you just to talk on the phone. You are welcome to call me anytime at this number. 915 261-3893

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Answered on 9/08/10, 9:15 pm


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