Tuesday, January 17, 2017

What Happens If I Just Bought A Car And Need To File Bankruptcy?

Most people who are not able to pay their bills typically don’t go out and make big purchases. But maybe it is the big purchases that caused financial distress, or maybe you made a once in a lifetime buy just before your company downsized, leaving you unable to make the payments. There are very few certainties in life, and when it comes to money and how far you can make it stretch, not everything is within your control. Emergencies come up, jobs are lost, people get divorced, and illness can strike at any time. So if you have just financed a major purchase and are now facing a situation that does not allow you to pay for the item, you have to consider how bankruptcy can help.

But what will the bankruptcy Court think if you come into a case just after having taken on a large debt, like a car loan? This can be a questionable circumstance, but it will not prevent you from receiving a bankruptcy discharge. Here are some things to know if this is one of the facts of your case:
         After your case is filed, and you sit down in front of the Trustee at your 341 hearing, you will be asked some questions about your debts. One of those questions will be whether you have taken on any debt with the intent to not make repayment. It is perfectly fine to answer this question by explaining that you have not incurred any debt with the intent not to repay it, and that the cause of your bankruptcy is job loss, a medical emergency, or whatever happens to be the cause.
         Some creditors will try and discredit you if you have just taken out a loan with them, and immediately filed bankruptcy. If you intend to reaffirm that debt though, you should not worry about these types of allegations.
When we work with you to come up with a solution to your debt problems, we take into consideration all of the factors unique to your case. This is so that you are aware of all the possible outcomes, and are prepared for what may come. If you have questions about bankruptcy, even with extraordinary circumstances, we can help.

For more information about bankruptcy, contact us today at www.law-ri.com. We will help you come up with solutions that work for your family, and have multiple locations where we schedule appointments so you can make a choice that is convenient for you.

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