preferential transfer?(or not?)
I just have a question about trading my car in to buy a new one while I still have the credit to do so. My car just broke down about 2 weeks ago. It has 100k miles on it. I paid the mechanic $1300 to fix it and there are more expensive problems as I write this that just came up. (the car has a lien and I have been making payments on it, on time. I said screw it and just traded it in and bought a new car which I will pickup in the middle of next week. I just cleaned my bank account out to put money down as well as the trade in of the old car. Since we are all now inside the 90 days that we must file to take advantage of the old laws I will have to list this transaction as a debt paid 90 days before filing. I know buying the car doesn't constitute a preferential transfer since I receive the item on the spot and it's not an old unsecured debt. Since the old car is "secured" will this be a preferential transfer when the dealer or finance company pays the old one off? I know it's up to the trustee to try and get back anything over $600 in 90 days from the old creditor, but I just don't want this to complicate my bk. I also don't want the trustee to ask why I bought a new car when I am broke.
BTW, I plan on filing a ch13 and will reaffirm the new car. I have every intention of paying what I can for 3 years into the plan and I need a reliable car to do this. I DID NOT transfer anything at all ever. No fraud here!
Thanks!
BTW, I plan on filing a ch13 and will reaffirm the new car. I have every intention of paying what I can for 3 years into the plan and I need a reliable car to do this. I DID NOT transfer anything at all ever. No fraud here!
Thanks!