Chapter 13 Bankruptcy and a New Vehicle…. What You Need to Know


It is essential that you receive the assistance of a bankruptcy attorney to avoid any claims of bad faith. Incurring debt just prior to bankruptcy is only allowed if you intend to repay the debt in full and you don’t incur the debt with the intent of discharging all (or some) of it in bankruptcy. Thus, it is essential that you can prove the new vehicle was a reasonable necessity. In other words, that you bought the car because you needed reliable transportation and not because you were about to file your case!

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Published In: Bankruptcy Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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