One of the most important possessions, for my clients, is a car. Clients need a reliable car to get them to and from work, pick up their kids, etc. Before purchasing a car you need to consider if you can afford the car, if you will get approved for a loan, and have you or are you planning on filing or bankruptcy.
Planning on Filing Bankruptcy and Car Purchase
Buying a car before bankruptcy creates a few problems. First if you put too much money down on the car prior to filing you may have an asset that is not protected. People even attempt to purchase a car and put it in another person’s name… and that creates even more of a problem. Second the court frowns upon debtors who rack up a whole lot of debt right before filing for bankruptcy and this could be considered abuse and get your case dismissed. Finally a bankruptcy lawyer is not allowed to give you advice on incurring more debt.
Purchasing a Car After Bankruptcy
If you have already filed for bankruptcy and received your discharge, you should wait several months to re-establish your credit before you go out looking to finance a vehicle. The better credit score you have, the lower the interest rate will be on financing. A vital point to consider, when purchasing a car after bankruptcy, is that the loan on the car is NEW debt, if you default, have it repossessed, or voluntarily surrender it, you will be sued and liable for the debt amount.
If you are thinking of filing for bankruptcy in South Florida and would like to speak with an experienced Miami Bankruptcy Lawyer then please contact Ofer Shmucher of Shmucher Law, PL to schedule a free consultation. We offer free consultations seven days a week and offer evening appointments.
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