Legal Question in Bankruptcy in California

Changing Cars before Bankruptcy

I have not paid on any of my debts except for my car payment for the last 2 years. I have known that I would be filing soon. Now I am about to file, and I want to get a different vehicle. I am changing jobs to one that I will need a nicer 4 door vehicle that I can drive clients around in. I currently have a 2 door VW beetle that I owe more on than its worth. I want to go finance a newer car that is more appropriate for business, and then include my current car in the bankruptcy and give it back to the lien holder. The newer vehicle I would keep and pass through the bankruptcy. Does this car change at the last minute raise a red flag to the judge?


Asked on 1/29/05, 9:27 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Changing Cars before Bankruptcy

It shouldn't be a problem as long as your monthly payments are reasonable (don't buy a BMW or Mercedez).

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Answered on 1/29/05, 9:34 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Changing Cars before Bankruptcy

I would say it might be a problem if the down payment is sizeable, and it came from your own funds. Otherwise, if it came from a relative, or you get a "0 down" deal, then it shouldn't be a problem.

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Answered on 1/30/05, 12:20 am


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