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?

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1 Lawyer Answer
Justin M. Gillman
Justin M. Gillman
  • 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

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