Legal Question in Bankruptcy in Texas

Voluntary Repo and Bankruptcy

My wife and I have decided to file bankruptcy. I am upside down in the car I am paying for. I would like to get out of this car loan and purchase a new(er) car. Should I do a voluntary Repo on my current car and buy a new car now (our credit is ok, just too much of it) or wait until the bankruptcy and just walk away from the car then. How will the voluntary repo affect my backruptcy?


Asked on 2/07/03, 4:20 pm

2 Answers from Attorneys
Michael Dover Michael A. Dover, PC

Re: Voluntary Repo and Bankruptcy

If you are going to purchase a new car, you should do so before you file. After filing while your case is pending, it would be difficult if not impossible for you to get financing for your purchase.

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Answered on 2/07/03, 6:34 pm
Andrew Nichols Law Office of Andrew B. Nichols

Re: Voluntary Repo and Bankruptcy

You could go two different routes. If you need or prefer a newer car you should get a new car loan now and then surrender the upside down car in the bankruptcy. The even better strategy from a monetary standpoint would be to surrender the upside down car and attempt to pay cash for a used car. Your bankruptcy case will last about 5 months. After the case is concluded you could probably obtain a new car loan in 6 months to a year after conclusion. Please feel free to call me to discuss your situation in more detail. ph. (214) 979-7330 or (800) 303-0720

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Answered on 2/07/03, 11:03 pm


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