Mother in law not thinking

[Wanderer1122]

What is the name of your state? Ohio

HI. My mother in law has just filed bankruptcy, she has not yet been to court and it has not been discharged. Last night she went out and financed a used car from JDByrider (rip off place BIG TIME). I filed bankruptcy 10 years ago and I thought she could not apply or get credit during this phase of the bankruptcy until it was discharged. Am I correct? Thanks.

[bigun]

That was pretty stupid.
She'll need to adjust her schedules and can expect the trustee to ask where she's getting the money to finance a vechicle when she's telling the court that she's broke and can't pay her bills as of the filing date.

[Wanderer1122]

Will they still allow her bankruptcy, she wants to file chapter 7. I told her that she may be forced to file a reorganization now since she applied and got credit (at a VERY high rate by the way ) dumb dumb dumb

[bigun]

A 7 is still very possible. She just will need to amend her schedules. Has she told her attorney?

[Wanderer1122]

She claims she is going to notify him today. She had enough cash on hand to buy a beater car until after the bankruptcy was discharged then go and finance something a bit nicer, but she wanted a nice car NOW. Did I mention that this is the second time she has filed Chapter 7? The other time was in 1998 so just now 7 years later here she goes again. Same path. Personally I think she needs to learn some money management skills instead of racking up the bills and filing bankruptcy as a way out. I do not understand why they allow this anyway. Yes she's family and I love her, but guess she just doesnt use her brain....