My husband and I are 57 years old with credit card of $90,000 and two mortgages on our house totaling $230,000. After 4 years of struggling, shifting funds from credit card to the other and writing cash advance checks against our almost paid off house, we have finally resorted to filing bankruptcy. We met with an attorney who I feel will be very good for us, but in our meeting he made us aware that we would probably lose our newest vehicle, a 2006 Jeep Liberty. We have a 1999 Chevy Cavalier and a 1998 Chevy Blazer. I was prepared for everything that would happen to us when filing, but I am quite upset about losing our paid off vehicle.
Our attorney suggested that once the trustee takes the vehicle, we could buy it back but we would have to find the thousands of dollars needed to do so, so he suggested we take a $9000.00 loan and offer the money to the trustee. I was wondering if we could pay off some low balance cards, pay the attorney and then offer the balance to the trustee. Since we would be taking a loan very close to filing, would this be fraud? In your opinion, how do you think this would be viewed by the court and/or trustee? I am very confused as to what to do.
Thank you for your time,
Conventional wisdom says that a loan close to bankruptcy would be very frowned upon by the court. I’ll ask some bankruptcy attorney friends to comment and give their opinion as well.