QUESTION
Can a dealership have you sign a paper stating if you file bankruptcy, you won't be able to put said vehicle under that bankruptcy?
Asked on May 27th, 2015 on Bankruptcy - California
8 ANSWERS
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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They can also ask you to give up your first born but such agreements are not likely to be held up in court. I'm not sure what your real concern here is, I assume you are not considering purchasing a car on credit and then filing bankruptcy and returning the vehicle.
Answered on Jun 23rd, 2015 at 2:59 PM
Those agreements are unenforceable. Otherwise, every creditor would have you sign these agreements as to their debts.
Answered on Jun 23rd, 2015 at 2:59 PM
Deborah F. Bowinski
They can ask you to sign whatever they like. The question instead, becomes whether such a document is enforceable. Filing for bankruptcy is a federal right - you cannot waive it. If you were to file for bankruptcy after making a purchase and signing such a document then it could raise questions of good faith, but when a bankruptcy case is filed not only can you, but you MUST list ALL debts that you owe at that time. If you have questions about the paperwork for your transaction, and if there are things that you do not understand or are not sure about, you should have the right to seek legal advice as to the documents.
Answered on Jun 23rd, 2015 at 2:59 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Yes, they can have you sign a paper that says that. They can also have you sign a paper that says you're going to fly a Boeing 747 to China while doing open heart surgery tomorrow. But neither paper will mean anything. If it was that easy to avoid the bankruptcy law, then every debt would have you sign away your bankruptcy rights. But bankruptcy supersedes contracts, including a contract that bankruptcy doesn't apply.
Answered on Jun 23rd, 2015 at 2:59 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Car dealers can have you sign all sorts of documents. That does not, however, mean that they are enforceable or valid. It also does not mean that having you sign them does not constitute a violation of any number of consumer protection acts.
Answered on Jun 23rd, 2015 at 2:59 PM
A contract can say anything. No one can force you to sign a contract. A contract that says you cannot put a debt into bankruptcy is void because it violates public policy. However, any debt you make within 3 - 6 months before filing bankruptcy can be ineligible to be discharged in a bankruptcy.
Answered on Jun 23rd, 2015 at 2:59 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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That kind of provision is unenforceable. It's used to scare consumers. You might try crossing it out, initialling the cross-out, and pointing out the change you have made to the sales person in writing. I cannot say for sure, but I speculate they would sell you the car anyway. Good Luck.
Answered on Jun 23rd, 2015 at 2:59 PM
As a secured creditor the dealership takes the car or you keep making the payment (some chapter 13 exceptions) in BK.
Answered on Jun 23rd, 2015 at 2:59 PM