Purchasing a car
I am about to file for bankruptcy. I currently have a car that is worth more than $5000 but is getting long in years and is getting expensive to maintain. I earn over $80k per year and could support a car payment on a new car while in bankruptcy. Can I buy a new car prior to bankruptcy and keep it? I would prefer to buy rather than lease. Which would be better? Thank you for your time.
Posted from: Alberta
The key to this is you are allowed to have up to $5,000 equity in a vehicle. So while there is no problem you making arrangements to finance a vehicle, be careful of how much you put down as it may result in you being over the exemption limit.
As for what is better a lease or financing, as long as there is less than the available exemption limit either way would work.