Debtors in the Tampa Bay area of Pinellas County considering bankruptcy but wanting to buy a car before filing must consult with an experienced Clearwater bankruptcy attorney. An experienced Clearwater bankruptcy attorney can also advise debtors who get a bankruptcy discharge on buying a car after bankruptcy. Only attorneys in Florida who specialize in bankruptcy can provide accurate advice on buying a car before or after bankruptcy. Bankruptcy law in Florida is complex. A debtor can legally discharge his or her debts through bankruptcy. In Florida most debts are discharged in a bankruptcy proceeding. Bankruptcy filing can also help homeowners save their homes from foreclosure.
Before Filing
A bankruptcy proceeding begins with the filing of the bankruptcy petition. The bankruptcy petition must be filed in the bankruptcy court. Most individual debtors file for bankruptcy protection under Chapter 7. A Chapter 7 debtor can claim certain assets as exempt assets. The bankruptcy trustee will not take over the exempt assets. The debtor will retain possession of the exempt assets in a Chapter 7 bankruptcy proceeding. If you have purchased a car before filing for bankruptcy, an experienced Clearwater bankruptcy attorney can assist you get exemption for your car. Under the Florida bankruptcy code, you can seek exemption for your car up to $1000. But if your equity in the car is above $1000, then you will have a problem. Your equity is determined by reducing the car loan amounts from the market value of the car. An experienced Clearwater bankruptcy attorney can assist you get exemption for your car even if your equity in the car is above $1000. You may have other categories to get exemption for you case if your equity exceeds $1000. There are many lawyers in Florida but attorneys who specialize in bankruptcy know how to negotiate with the bankruptcy trustee. If your equity in the car exceeds $1000, negotiations with the trustee will allow you to retain the car if you pay the amount of equity that exceeds $1000.
Debtors located in the Tampa are must consult with an experienced bankruptcy attorney if they intend to buy a car prior to bankruptcy filing. Generally the bankruptcy trustee will question the purchase of a car if it is an unsecured purchase and made within 90 days prior to the filing. It will be seen as an attempt to divert available funds away from the bankruptcy estate. An experienced Clearwater bankruptcy attorney can convince the bankruptcy trustee that you purchased the car because you needed and that you did not purchase the car merely to divert the available funds away from the bankruptcy estate in an attempt to avoid paying your creditors. A seasoned bankruptcy attorney can assist debtors with older debt free cars legally trade them for newer cars with proper planning. This will ensure that the purchase of the new car is within the framework of law. The law prohibits bankruptcy lawyers from advising debtors to buy a new car because buying a new car means incurring a new debt.
During Bankruptcy Proceedings
While it is possible to buy a car after filing a bankruptcy petition and before the discharge, it is advisable to wait for sometime after the filing. An experienced Clearwater bankruptcy attorney can help you with the purchase but will ask you to make the purchase after the creditor meeting is over and never prior to the creditors meeting. Buying a car after you have filed for bankruptcy and before the discharge can be difficult unless you have someone who is willing to lend the money. The usual lenders will be reluctant to lend to you and those willing will charge high interest rates. You will be asked to explain your repayment plan.
After Bankruptcy
A debt who receives a bankruptcy discharge will find it easy to buy a car. Once you receive a bankruptcy discharge, there is no legal bar on buying a car or anything else. Your only problem will be your credit score which will take a hit when you file for bankruptcy. Bankruptcy will lower your credit score by 160 to 220 FICO points. An experienced Clearwater bankruptcy attorney can provide you with invaluable advice on how to improve your credit score after a bankruptcy discharge.
Clearwater bankruptcy attorneys can also provide you with details of Tampa lenders willing to finance car purchases by persons who have just been discharged in a bankruptcy proceeding. There are many such lenders in Tampa. The loan will be secured by the car and the lenders know that since you have just obtained a bankruptcy discharge you cannot file another bankruptcy petition in the near future. So if you default, they can sell the car and recover the loan.