Spring, TX asked in Bankruptcy for Ohio

Q: If I have a lease agreement for a 1300 laptop and I pay it off right before filing bankruptcy, will they take it?

Leasing from Progressive, it cost $1300 total. I want to pay it off in 90 days. If I pay it off and then file for bankruptcy in 2-3 months will they look at the payments from a bank statement and take the property?

Related Topics:
1 Lawyer Answer
Justin M. Gillman
Justin M. Gillman
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Edison, NJ

A: Not sure the "leasing" part is accurate. If you will own the laptop after it is paid off, it will be an asset and paying it prior to bankruptcy as a secured creditor (or lease) should not materially impact your case. You will have to disclose it. The issue would be that it was a "preference". That said, the bankruptcy code would only allow for the trustee to seek to recover the money if it caused some reduction in what your other creditors would receive in the case. I don't see that here. Also don't necessarily understand why you want to pay it off in 90 days before bankruptcy is filed.

Timothy Denison agrees with this answer

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.