Q: I will file a 2nd bankruptcy in July. But, my car has broken down and still has payments . Can I buy a car now?
My car needs extensive repairs and I wanted to put the car on my bankruptcy. However, I need a car now. How will purchasing a second car affect my bankruptcy or should I wait until after I file?
A:
This isn't a decision you should make without speaking to a bankruptcy attorney. There are too many factors in play to make a decision based on general information. In some cases, purchasing a car before filing for bankruptcy makes sense and is a legitimate choice, while in other cases it may raise red flags about your eligibility or put the car at risk (if your equity exceeds applicable exemptions). Make sure you have the information you need about your specific circumstances before you act.
*Kevin Chern is an Illinois licensed attorney who has practiced in federal consumer bankruptcy law and consumer protection law for the last 21 years. He is the Managing Partner of UpRight Law. Kevin's law partners are licensed in all 50 states and work in conjunction with Mr. Chern to provide bankruptcy and consumer legal services in all 50 states. Mr. Chern's answers to the questions are intended for informational purposes only and are not intended to be legal advice. Use of the answers does not establish any attorney-client relationship. For legal advice, you should consult with an attorney licensed to practice law in your state and with appropriate expertise.
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