Legal Question in Bankruptcy in California
Automobile Ownership under Chapter 7
Can one purchase or lease a primary - use car (my car
was totalled a few days ago) if you plan on filing for
Chapter 7 bankruptcy in the next 2-3 months?
3 Answers from Attorneys
Re: Automobile Ownership under Chapter 7
Of course.
Re: Automobile Ownership under Chapter 7
Yes, so long as it is a bona fide, for value transaction. So long as you keep making payments you should be able to keep the car. What you won't be allowed to do is to buy the vehicle, then stop making payments, then file bankruptcy and not have to pay for your use of the vehicle. Feel free to email or call for a quote.
Re: Automobile Ownership under Chapter 7
Leasing wouldn't be a problem. Owning won't be so long as you don't have equity (meaning the value minus what you owe) in the car exceeding your allowable exemption (which is $1,900 at the minimum).
In either event, if you want to keep the car after filing the bankruptcy, all you will have to do is keep up the monthly payments.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
