Q: Soon filing for chapter 7 but before I do I am getting a new vehicle, my Dad is co-sign. Is tgis a terrible idea?
The current vehicle I don’t want stuck with for 7 years with ch 7 b/c it’s worth more than what’s owed.
A:
Getting a new vehicle before filing for Chapter 7 bankruptcy can be risky. When you file for Chapter 7, your assets, including a new car, become part of the bankruptcy estate. The trustee might view the new vehicle as an attempt to protect an asset from creditors, which could complicate your bankruptcy case.
Additionally, taking on new debt just before filing could be seen as bad faith. The bankruptcy court might scrutinize the new loan, especially since your father is co-signing. This scrutiny could lead to the loan being included in the bankruptcy, potentially leaving your father responsible for the debt.
Before making any decisions, consider the implications carefully. It might be worth exploring other options for dealing with your current vehicle and discussing your situation with someone knowledgeable about bankruptcy laws.
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