What happens to a new car after I file for bankruptcy? 13 Answers as of October 28, 2011

I tried to refinance my house and get rid of some credit cards and the loan officer said I could purchase a new car and wrap it in the refinancing at 4%. That all fell through. I tried another loan company and it fell through, because of the car. Nobody in town will refinance me and I'm crashing. If I file bankruptcy, what happens to the new car?

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AZ Law Group of Trezza & Associates
AZ Law Group of Trezza & Associates | Stephen Trezza
You must make the payments to keep it.
Answer Applies to: Arizona
Replied: 10/28/2011
Robert Peters, P.A.
Robert Peters, P.A. | Robert L. Peters
If I understand you question correclty it is " can I keep the new car that I just purchased"? The answer depends on weather you have a loan on it. If you owe more than what the car is worth is is not an asset of the bankruptcy estate and if you can make the payment you can keep it. If you have equity in the car, the answer is more complicated and it depends on how much equity you do have in the car. You really need to sit down with a bankruptcy attorney and discuss in detail your ENTIRE financial situation.
Answer Applies to: Florida
Replied: 10/11/2011
Batten & Beasley, LLC
Batten & Beasley, LLC | Gigi Penn
You may elect to reaffirm your car loan (continue to pay under the same loan terms) and keep the car OR you may surrender the car (the lender will repossess it) and the debt will be discharged in bankruptcy.
Answer Applies to: Minnesota
Replied: 10/11/2011
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you file a bankruptcy, the car lender will ask you to sign a reaffirmation agreement so that you can keep the car.
Answer Applies to: New York
Replied: 10/11/2011
Littleton Bankruptcy Attorney
Littleton Bankruptcy Attorney | Ronald S. Dee
You can keep it if you can continue to make the payments and the amount of equity in the vehicle does not exceed the exemption amount
Answer Applies to: Colorado
Replied: 10/28/2011
Ashman Law Office
Ashman Law Office | Glen Edward Ashman
As a general rule, a recent purchase of a car will be problematic and may adversely affect a bankruptcy. There are exceptions.
Answer Applies to: Georgia
Replied: 10/28/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
If you cannot get financing for the car you need to return it. You should not have a new car if you cannot afford the outstanding debt you have.
Answer Applies to: California
Replied: 10/28/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
If you are financing a car and file bankruptcy you can keep the car if you reaffirm the debt.
Answer Applies to: California
Replied: 10/28/2011
Heupel Law
Heupel Law | Kevin Heupel
As long as you continue to make your car payments after you file bankruptcy, you can keep the new car.
Answer Applies to: Colorado
Replied: 10/28/2011
Law Office of Harry L Styron
Law Office of Harry L Styron | Harry L Styron
It depends on the financing and the Chapter you file under. If you have regular income and file under Chapter 13 then you can keep the car or give it up. If you file Chapter 7 and you owe more on it than it is worth then you have the option of keeping it and continuing to make the payments. If it is worth no more than $2,700 more than the financing, then you probably will get to keep it. If it is worth more than that and the bankruptcy trustee thinks he or she can get more than the expenses of sale then it will probably be sold, you will get the $2,700 and the bankruptcy trustee will use the balance to pay off your creditors.
Answer Applies to: California
Replied: 10/11/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    If you can afford the vehicle after discharging the other debt, you can keep the car by reaffirming the debt. If you cannot afford that, you will likely have to give up the car. If you are in my area, please contact me for a free consultation.
    Answer Applies to: California
    Replied: 10/11/2011
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