Car purchase during bankruptcy
My father purchased a vehicle for me in the amount of 6500$ which he paid for but the car was registered in my name. He is selling to me for 300$ since I cannot buy anything over 500$ during my bankruptcy. This is not a gift since i am paying him
300$ is this allowed?
Posted from: Ontario
There is no rule stating that you cannot buy something worth more than $500 if you are an undischarged bankrupt…
As long as you have a bona fide agreement to repurchase the car from your father then there shouldn’t be any issues. If you aren’t actually paying for the car then there will be problems – your trustee will treat the car as a “gift” which means your trustee can seize and sell the car for the benefit of your creditors. So, make sure you have a signed agreement with your father and make the payments every month. If you don’t pay you won’t be able to keep the car…