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Can you buy a car with cash and then declare bankruptcy?

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Answer:

Check your local bankruptcy exemptions. Find out what the vehicle exeption is (In Ohio its $1,000). Buy a car that is worth around that much and then discharge everything else.

You can also bank something equal to what you spend on the car (minus the exemption). Most bankruptcy Trustees will allow you to "pay the dif" of blue book - exeption. So, if you have a $1,000 exeption and buy a $6,000 car- you may be able to pay the Trustee $5,000 (sometimes over a period of time) and they will let you keep the car.

Answer

Chap 7 "Federal" exemption for cars is currently $12,000. You may decide to choose your state exemption instead if parts of it are more friendly to your filing.

try www.nolo.com for answers

Contributor:

Neila222

First answer by Neila222. Last edit by Neila222. Contributor trust: 3860 [recommend contributor ]. Question popularity: 239 [recommend question].

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