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Can I take a collateral loan against my car before filing bankruptcy?

April 26, 2017Bankruptcy Business car collateral credit filing Finance loan

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Can I take a collateral loan against my car before filing bankruptcy?

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When you take out a loan, the assumption is that you intend to pay it back. Taking out a loan just before filing for bankruptcy implies that you were not dealing in good faith and never intended to pay it back. The judge could exclude debts that were “piled on” in this way, and you may have committed bankruptcy fraud.