Can you trade in your vehicle if it is part of your bankruptcy? 6 Answers as of March 24, 2011

I am currently in bankruptcy. My vehicle is under that claim, can I trade it in although it is part of my bankruptcy?

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Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
It depends what type of bankruptcy (Chapter 7 or 13) you have open, how much equity is in the vehicle, and how much time has gone by. Normally, in any bankruptcy you can choose to surrender any financed vehicle. If it is a Chapter 13 you should be able to purchase a new vehicle with permission from the Trustee.
Answer Applies to: California
Replied: 3/24/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
If you are in a Chapter 13 you might need the court's permission. If you are in a Chapter 7 and the trustee has issued a "no asset report" you can trade it in. That report is generally done after your 341(a) hearing.
Answer Applies to: California
Replied: 3/22/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
I'm not sure which state you live in, and I'm assuming you will trade in your car and try to obtain a new loan. Generally, while you are in bankruptcy you cannot get a new loan for a car without the permission from the court. Contact an attorney in your state to discuss your particular matter.
Answer Applies to: Washington
Replied: 3/22/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
That depends on what chapter you filed, what equity there is in the vehicle, whether you exempted any equity, and whether the time for objecting to exemptions has passed in your case.
Answer Applies to: California
Replied: 3/21/2011
Law Office of L. Paul Zahn
Law Office of L. Paul Zahn | Paul Zahn
If you have filed for bankruptcy, you cannot transfer property until the discharge is done. The bankruptcy court has the authority to undue any transaction you engage in while in bankruptcy.
Answer Applies to: California
Replied: 3/21/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    If you're in a 13, you need to coordinate with your bankruptcy attorney. If you're in a 7, you may be able to trade it in depending on when in your bankruptcy you are. You should consult with counsel.
    Answer Applies to: California
    Replied: 3/21/2011
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