Will it hurt our bankruptcy if we buy a new car? 9 Answers as of April 07, 2011

We have a car now that our attorney will not reaffirm, if we buy another car now, will that hurt our bankruptcy? We filed the 17th of March.

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Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
The look back period is 6 months before filing. Debt arising after a BK is filed won't affect your filing. However, if you filed a Ch 13 then you cannot incur new debt without approval.
Answer Applies to: Washington
Replied: 4/7/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
The reason your attorney will not sign the reaffirmation agreement is probably because he or she can not certify that you can afford the car you have. If you sign the reaffirmation agreement the issue will go before a judge. Even if the judge denies your reaffirmation agreement, (because you can't afford it), you still get to keep the car as long as you make the payments. If you buy a another car now you get a very bad deal on the interest. You need to discuss this further with your lawyer.
Answer Applies to: California
Replied: 3/30/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
The thing to always look at is what kind of car, how much, and where are you coming up with the money. As long as you have enough applicable exemption to cover the equity and you have the funds to purchase the car or finance it, you should be fine. This is not legal advice and if you need legal advice, you should ask your lawyer.
Answer Applies to: Indiana
Replied: 3/30/2011
Ferguson & Ferguson
Ferguson & Ferguson | Randy W. Ferguson
When you have hired an attorney on a bankruptcy, no other attorney can give you legal advice of what to do. You need to address the question to the attorney you are paying.
Answer Applies to: Alabama
Replied: 3/30/2011
Bankruptcy Law Office of Robert Weed
Bankruptcy Law Office of Robert Weed | Robert Weed
Are you financing that car? You'll get a terrible rate. Also probably can't get a loan until the case is discharged, in about 4 months. Paying cash for a junker? If you shop carefully that could be smart.
Answer Applies to: Virginia
Replied: 3/30/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    First of all, it's not up to your attorney whether or not you reaffirm a debt; that is your decision, and yours alone. I completely agree with your attorney not to sign off on any reaffirmation agreement, and to advise you against doing it, but again the decision is yours. If you wish to reaffirm the debt (which is the only sure-fire way to keep your vehicle from being repossessed post-bankruptcy closing) you can do so, but you will need to attend a hearing in front of the Judge in your case. As far as purchasing a new vehicle now, it really depends on what chapter of bankruptcy you filed. If you filed a Chapter 7, there is no problem with you doing so, as long as you don't use assets that are part of your bankruptcy estate to do so (unless they are exempt and the Trustee in your case has abandoned them). In a Chapter 13 case, you would need court approval to purchase a new vehicle.
    Answer Applies to: California
    Replied: 3/29/2011
    Law Office of Aaron Nielson
    Law Office of Aaron Nielson | Aaron Nielson
    Why won't your attorney reaffirm the current car? Is it a bad car, too expensive or does your attorney just refuse to do all reaffs? The same reason for not reaffirming might apply to buying a new car. Usually there isn't a problem swapping out an old car for a new one if you can afford it. You should still talk to your attorney or at least get all of the facts to an attorney to see how this will impact you based on all of your facts. accurately evaluate any case.
    Answer Applies to: Washington
    Replied: 3/29/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Since you have an attorney who you paid to represent you why not ask your attorney who knows your case better than anyone else? Not reaffirming the debt for the car does not necessarily mean you cannot keep it. Also, you can try to reaffirm the debt even if your lawyer will not recommend it. Just the act of attempting to reaffirm the debt should be good enough for the car finance company even if the judge denies approval of the reaffirmation agreement. You should really discuss your options with your attorney before going out to buy a new car. Has your lawyer mentioned a redemption if the vehicle is badly upside down? How about calling the auto finance company and trying to get the interest rate and loan balance reduced (an auto modification)? In most cases you can pay and ride and not reaffirm even if the bank threatens to repossess the vehicle if the debt is not reaffirmed. Trying to reaffirm and having the reaffirmation agreement rejected by the court is enough for your to "pay and ride." Again, if you pay a lawyer for bankruptcy legal services then you must have your lawyer advice you as to your options.
    Answer Applies to: California
    Replied: 3/29/2011
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