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Question regarding Ch 7 and Auto Loan

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Kodiak

Junior Member
What is the name of your state?What is the name of your state? Utah

I have a question regarding a Chapter 7 I plan on filing in the next month. I am forced into a Bankruptcy due to restructuring at my work. They closed us down and transferred us into other departments. While I am thankful I remained employed it involved a $20000 pay cut and I am getting to the point where I am juggling the money every month to pay the bills.

I have 2 vehicles financed, both with negative equity. I owe $16000 on one and $10000 on the other. I will surrender at least one of the cars during the bankruptcy. Here is my question, will I get myself into trouble with the courts or creditors if I go out before I file a chapter 7 and buy a $5000 car and finance it, then I would surrender both of my current vehicles and have a car pay ment that is over $125 lower than my current car loan. I don't know if this is legal to do or not because I would be filing bankruptcy within a month after buying the vehicle.

The other thing I could do is just keep one of my current vehicles, but I figured since I am filing a Chapter 7, I may as well reduce as much of my debt as possible including car payments. Thanks for your replies in advance.
 


Ladynred

Senior Member
You'll have to reaffirm the car loan after filing to keep the car.
No, he/she won't. UTAH does NOT require reaffirming or redeeming to keep secured property. If you reaffirm, its YOUR choice.
 

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