new car during bankruptcy

[yessy]

What is the name of your state? CA
My sister in law started bankruptcy about 4 months ago but during this time she took out a brand new car from the dealer and her husband has a new car also on which they are both making payments on. will they have to give up the cars when the bankruptcy is final or will they be able to keep it???

 

[nissandave]

Actually, they need to worry about their entire bankruptcy case being dismissed due to this. You never, ever go get another loan until you receive your discharge papers. If they did the case pro se, then this is exactly why you need a lawyer and if they had a lawyer, then if the lawyer did not explain this to them, then he/she is an idiot.

 

[Ladynred]

Did they file CH 13 or Ch 7 ?

Incurring new debt in a Ch 13 IS allowed, but you must have the Trustee's permission to do so.

Incurring new debt like this with a Ch 7 is pretty risky - where'd they get the money to make payments on 2 NEW cars ???? Smells like bankruptcy fraud .. or it will to the Trustee.