A bankruptcy attorney can assist you with your bankruptcy filing. However there is more a bankruptcy attorney can do for you. Besides assisting you file for bankruptcy, the bankruptcy attorney can be an invaluable source of assistance. An experienced bankruptcy attorney can assist you buy a car during a Chapter 7 bankruptcy case.
Buying a car during bankruptcy can be complex. When you file a bankruptcy petition under Chapter 7, the court will appoint a bankruptcy trustee to liquidate your assets and pay off your creditors. The trustee will take over all your non-exempt assets. Based on the exemption elected by you, your car may be an exempt asset. An experienced bankruptcy attorney can assist you in determining your exemptions. However, if you do not have a car or you want to purchase another car while your Chapter 7 bankruptcy petition is pending, you should ideally wait until the creditors meeting is over. It may be difficult for you to obtain finance for your car while you are in bankruptcy. Even if lenders are willing to offer you finance, you will be charged a high interest rate. There are lenders who specialize in providing finance to people in bankruptcy. Meet the lender and explain the reasons for your bankruptcy. If the reason for your bankruptcy is something beyond your control like loss of employment or sudden illness, then the lender will adopt a positive approach while dealing with you especially if you have a regular source of income. The lender will want to know how you intend to pay back. You must have a detailed repayment plan to show the lender. Many bankruptcy attorneys have a list of lenders willing to finance the purchase of a car during a Chapter 7 bankruptcy case.