Can you make large purchases before your bankruptcy is discharged? 3 Answers as of November 11, 2010

I filed for bankruptcy, and it has not been finalized yet, but I really need to buy a car. I had to sell mine to live, but now that I have a new job, and I need a car to get there. Can I do this while my bankruptcy is still going through? If so, how will it affect the bankruptcy?

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The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
That depends on what chapter of bankruptcy you filed, and you have not provided that information.

In a Chapter 7 case, you can purchase anything you want as long as you are not using funds that belong to the Chapter 7 Trustee (and that depends on how far along you are in the case and what exemptions you took on your assets). If you are simply talking about financing a new vehicle for no down payment, that shouldn't be a problem.

In a Chapter 11 or Chapter 13 case, you would need court approval to do so.
Answer Applies to: California
Replied: 11/11/2010
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
You should consult with the attorney representing you in the bankruptcy.
Answer Applies to: South Dakota
Replied: 11/11/2010
Sussman & Associates
Sussman & Associates | Mitchell Sussman
It should have no effect on your discharge.
Answer Applies to: California
Replied: 11/10/2010
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