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Buying A Car Before Chapter 7 Discharge

jjb0894
Regular Contributor

Buying A Car Before Chapter 7 Discharge

So I traded my paid off car in for another car that I paid the difference for in cash, the Trustee already filed a report of no distribution so does anyone think this will be an issue?

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Chapter 7 Discharge: March 13, 2019

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StartedOver62018
Contributor

Re: Buying A Car Before Chapter 7 Discharge

I drive a 2002 Acura and my Attorney advised me to buy a car before I filed because of the cheaper APRs. Cars do not last forever. He said the courts are generally understanding, if you are buying something modest and it is your primary mode of transportation.

 

The only thing that I can think of is the cap on exemptions. Do you know what the total amount of exemptions that are allowed in your state? If the value of your car and other exemptions are less, it should not be a problem. They may want to know where the money came from to make sure you were not hiding it at the time of filing.

 

Lastly, I'm not a lawyer. YMMV. Nolo.Com has a lot of good information

Ch 7 Discharge 10/15/2018

Started 10/18: Eq Fico 9 ???, Ex Fico 9 620, Tu Fico 8 511
Current 8/3: Eq Fico 9 736, Ex Fico 9 717, Tu Fico 9 704 Fico 8 655

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jjb0894
Regular Contributor

Re: Buying A Car Before Chapter 7 Discharge

I put $1,000 cash on top of the trade for my old car and didn’t get any financing.
The money came from a combination of wages I had been paid and left over cash from my tax return that the trustee didn’t take.
The value of the vehicle is roughly the same but the paralegal said I have thousands in leftover exemptions should anything else come up.

I went from a 2014 Civic to a 2008 Pilot. I told the dealer I was in a bankruptcy and couldn’t finance so they tried to get as close to a straight trade as possible. The Civic was paid off as well. That’s why I think it’s not a huge issue because it’s not like I bought a BMW or anything, and it’s my only vehicle.

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Credit One Platinum Rewards Visa, $400 Credit Limit.



Indigo Platinum MasterCard, $300 Credit Limit



Chapter 7 Discharge: March 13, 2019

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jjb0894
Regular Contributor

Re: Buying A Car Before Chapter 7 Discharge

They used KBB trade in for the Civic and WA is one of the very few states that allows federal OR state exemptions so I had to use the federal wildcard exemption to exempt my car. And I’m married so it doubles.
The trade in value of the car I just got is actually lower than the Civic but the actual retail value is pretty close to the same.

Capital One Platinum MasterCard, $500 Credit Limit.



Credit One Platinum Rewards Visa, $400 Credit Limit.



Indigo Platinum MasterCard, $300 Credit Limit



Chapter 7 Discharge: March 13, 2019

Message 4 of 5
StartedOver62018
Contributor

Re: Buying A Car Before Chapter 7 Discharge

Sounds like you are in a really good spot then. Congrats on the newer car.  

Ch 7 Discharge 10/15/2018

Started 10/18: Eq Fico 9 ???, Ex Fico 9 620, Tu Fico 8 511
Current 8/3: Eq Fico 9 736, Ex Fico 9 717, Tu Fico 9 704 Fico 8 655

Cap1 Plat PC to QS 1.5k, Discover it Chrome Secured $500, NFCU GoRewards 2k (was Secured nRewards $500), Share Loan 1k (paid down to 8% due 2/2020), VentureOne 1k, NFCU CLOC 1k, OllO Optimum $800
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