Wichita Falls, TX asked in Bankruptcy for Texas

Q: vihicle surrendered in chap. 7 can I create debt for vihicle within the 2 month period after trustee meeting

filled 12/11/2018, trustee meeting 1/9/2019, vihicle will be surrendered 2/24/2019. can I create loan now with first payment after 3/9/2019

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3 Lawyer Answers
John Martin Hilla
John Martin Hilla
Answered
  • Bankruptcy Lawyer
  • Livonia, MI

A: It's not quite clear what you're asking. Are you asking whether you can buy a new car within 2 months of your 341 Meeting of Creditors?

The first response is always that you should pose this question to the attorney that you hired to assist you with your bankruptcy case. I presume you have one if you have already filed. If you have filed without an attorney, I recommend you consult with a bankruptcy attorney in your local area to discuss the issue, if any will discuss it with you.

There is generally no prohibition on incurring new debt after the filing date of a Chapter 7 bankruptcy, but, depending on where or how you are getting the money for the new vehicle, there could be an issue with the need to preserve the assets of your bankruptcy estate until the Chapter 7 Trustee has formally abandoned interest in those assets, as well as other issues you should discuss with your attorney.

Mr. J. Thomas Black
Mr. J. Thomas Black
Answered
  • Bankruptcy Lawyer
  • Houston, TX
  • Licensed in Texas

A: Yes, there is no reason why you cannot incur a new debt to finance a vehicle after the filing of a chapter 7, but if you have an attorney you should discuss it with him or her.

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Talk to your lawyer first, but you should be able to incur post petition debt to buy the car if you have a lender.

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