There are more myths about bankruptcy and vehicles than there are new models to choose from. So here are some of the car myths and the real answers:
Cadillac Myth: You will lose your car in a bankruptcy filing.
Reality: Almost never, and if there is even a little chance you would lose your car, we would not let you file the bankruptcy to begin with unless you wish to give up your car.
Continental Myth: You cannot get a car for years after the bankruptcy is over.
Reality: Not True! In fact, one of the easiest things to do after your Chapter 7 bankruptcy is finished is to get that sorely-needed car. Almost all of our clients get invitations to buy cars while they are still in the middle of their Chapter 7 case. Why? Because once you have gotten rid of your old debt, most of you will have freed up enough money to ditch that junker that is costing you thousands to repair and make payments on a modest, reliable vehicle that will get you safely to work.
Corvette Myth: If you get a new car right before you file for a bankruptcy, the Court will get mad at you and you will have to give it up.
Reality: Mostly false. It is never a good thing to get an inappropriate car just before you file any kind of bankruptcy, such as a luxury, sports, or unneeded car. But sometimes your car is in such bad shape that I may even recommend that you buy a car before you file a Chapter 13 payment plan.
Buying a Car and Filing a Bankruptcy
If you are driving a vehicle that is unreliable and costing too much money to keep on the road, I would recommend that you purchase a modest new car to get you through the next five years of a Chapter 13 payment plan. You will need your job to successfully complete your payment plan, especially if you do not have access to public transportation.
Don’t fall for the myths about having or buying a vehicle and filing a bankruptcy. We won’t steer you wrong.