Legal Question in Bankruptcy in California

I need to file bankruptcy and I need a new car. How will a new car loan look to the bankruptcy court?

Asked on 2/24/11, 10:49 am

3 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Maybe if you buy a used car and pay cash you'll be able to live within your means and not have to go bankrupt.

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Answered on 2/24/11, 11:17 am
Brian Whitaker Lifeline Legal, LLP

Purchasing a car prior to filing BK is normally not a problem ... as long as you recognize that you will have to pay for it.

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Answered on 2/24/11, 12:00 pm
Asaph Abrams Law Office of Asaph Abrams

There are issues of lien perfection and avoidance, good faith and incurring new debt, and means test considerations. Gobbledygook, I know, but all your friendly-neighborhood San Diego lawguru attorneys here can promptly advise what's relevant. Taking a car loan per se (that's such a clich´┐Ż instance of legalese, I know, but... it sort of fits here) does not raise a red flag, as it does not necessarily reflect ability to repay other debts, while still providing for one's transportation needs. Still, Dear Reader in this situation, prior to acting (or not acting) in regard to bankruptcy and related financial planning, seek legal counsel: it's worth it.

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Answered on 2/24/11, 12:15 pm

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