Legal Question in Bankruptcy in California

Filled and need car

I have filed chapter 7 bankruptcy (under the old law) and I was advised that I can not apply for a small loan ($1500.00) to purchase a car. I have a car now that I will need to do a voluntary repo on and my car payments now are $356.00 a month, I can not make payments at this amount and will need a car when this one is returned. My question is why cant I get a loan for about $1500.00 and have payments of $75.00 a month in which I can afford? I can not get cash from anyplace or anybody to help me with this issue. What can I do?


Asked on 10/20/05, 1:30 pm

2 Answers from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Filled and need car

On your bankruptcy statement of intentions, you have to list what you would do with the car, and then you're supposed to carry out those intentions within the requisite time period.

As for the new loan, a bankruptcy debtor is not supposed to incur new debt while in the BK. I usually tell my clients to borrow a car for a while from a friend, or get together some cash and get a used car to get you by until your finances improve.

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Answered on 10/20/05, 1:46 pm
Mark Markus Law Office of Mark J. Markus

Re: Filled and need car

There is no restriction that I'm aware of that prevents you from trying to get a loan during a ch. 7 case. It's potentially risky given the various things that can happen during a Ch. 7 case, and you would need to be advised by an attorney who has reviewed your entire situation, but I there isn't any restriction on it.

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Answered on 10/20/05, 7:32 pm


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