Legal Question in Bankruptcy in Georgia

Conversion and losss of vehicle

I am currently converting my Chapter 13 to a Chapter 7 bankruptcy. I am surrendering my vehicle and I have a car dealership that tells me they can get me financed now before the conversion shows up on my credit. Is this legal and if not how long before I can aquire a new vehicle?

Thanks!


Asked on 8/30/04, 9:55 am

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Conversion and losss of vehicle

Your Chapter 13 lawyer should be advising you on this, and you should be asking him before you do anything affecting your finances.

Do not do business with that car dealer. It violates a Chapter 13 plan and banruptcy laws (and may be a crime) to not seek approval from teh Court to finance a car while in a Chapter 13.

Once in a Chapter 7, you can finance a car IF a lender will (most will wait for the discharge though), but if you lie on the application to conceal the bankruptcy (by omission) you have committed fraud on the lender.

A dealer that would suggest this is as low as car dealers get and it would be absurd to trust or do business with such a person, even later.

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Answered on 8/30/04, 10:18 am


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