I have an open chapter 7 bankruptcy and surrendered my car. I've had my meeting of creditors, my 341 meeting. Due to a change in my work schedule I might need a car before my discharge. I've read that it is possible to get financing during an open bankruptcy but only after the 341 and if a lender is willing to finance. My lawyers paralegal said wait until the discharge, but they sounded rushed to answer my question versus listen to what I was saying. I've heard yes and I've heard no, what is the right answer? I know I can seek help from family/friends or save cash, but saving cash takes time.
Real Estate Attorney
I would say better safe than amending the petition. If your circumstances or assets change your petition may be modified and that uncertainty is most likely not worth the short term convenience.
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Chapter 7 Bankruptcy Attorney
I don't know anyone who will finance a car if a debtor is in an existing open chapter 7 case. I would love to hear from anyone on this board if they've found otherwise. What my clients have done is simply borrow a friend/family's car or rented one that bridged the gap between surrender & discharge. Meanwhile, you can shop around & get a purchase lined up. Have your attorney email you the discharge order when it comes through (it will get there faster by email than the paper copy that you will receive in the mail). As soon as you have that discharge order you can bring it to whereever you have lined up as a purchase & give them a copy of it.
I am not YOUR lawyer. Don't rely on answers to questions as legal advice. For legal advice contact a Bankruptcy Attorney for a consultation. Tokarska Law Center is a Federal Debt Relief Agency representing individuals and businesses in filing for bankrutpcy protection under the U.S. Bankrutpcy Code. Kathryn U. Tokarska is a San Diego Bankruptcy Attorney, owner of Tokarska Law Center, 185 West F Street #100, San Diego, CA 92101, (619) 285-1992 www.sdbankrupt.com
Chapter 7 Bankruptcy Attorney
I agree with Ms. Tokarska. I have never seen a lender who will advance the funds to purchase a new car for someone who is in an open Chapter 7 but that is not to say that it is not possible. The only way to really know is to go to the lender and see what they are willing to do but renting a car or borrowing a car for a couple of months may not be such a bad idea in the interim.
My answer is general information not intended to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. If you are in Washington, please feel free to contact us at (425) 283-0432 to see if we might be of assistance.