I live in Ontario Canada. I have a laptop that I have been making payments on for 9 months. I need to sell it to make money to fix my car. However, I am supposed to be making payments for the next 3 years. I am planning on declaring bankruptcy in a month or so because of recent illness. Is it illegal for me to sell my laptop when I still have a balance owing, even if I am planning on going bankrupt?
2007-04-05 05:22:07 · 13 answers · asked by Melton 2 in Politics & Government ➔ Law & Ethics
That sounds illegal on so many levels. See a lawyer.
2007-04-05 05:26:15 · answer #1 · answered by sam simeon 3 · 1⤊ 0⤋
Not a good idea. Not sure what the laws are in Canada, but usually is a window of about 6 months before the bankruptcy, where you can still held accountable for all the debt incurred during that period if it can be proven that you tried to delibertly defraud the company because you were going to file bankruptcy.
Additionally, the company that is selling the computer to you on a payment plan has collateral interest in the laptop. In a bankruptcy, they could seek relief in the Court to ask for the laptop back; if you sell their collateral, you could still be held liable for the full amount owed, plus interest as they may be able to have the Judge exclued it from the bankruptcy.
If you are going to be filing bankruptcy anyway, check with your attorney before doing anything.
2007-04-05 12:33:08 · answer #2 · answered by bottleblondemama 7 · 0⤊ 0⤋
This is really sticky -- you need to review the loan documents you signed when you got this "payment plan."
It's probably not illegal (in that you'd get thrown in jail for doing it) but you will likely get sued by the company you got the loan or computer from.
This type of personal loan is probably secured with the collateral of the computer. Thus, if you default, they can take your computer back. However, it may also be a personal, unsecured loan, where if you default, they can also accellerate all remaining payments, tell them you owe the entire balance right now, and sue you for it.
If the loan is secured, and you transfer the collateral, that's also probably grounds for them to declare you in breach and demand that you pay the entire balance immediately.
If it's unsecured (i.e. not tied to the collateral) and you sell it, you will have to continue making payments on the loan. You can try to call the company and see if you can transfer the computer to someone else with them taking over the payments, but, depending upon what the loan agreement says, that may not be permitted. Also, who's going to buy a 9 month old laptop for cash AND take over payments? It's a used computer, probably worth only 70% of what you paid for it.
This could also affect your bankruptcy, as certain transfers of assets for less than fair market value can be "recaptured" by your debtors if they were made within a certain amount of time.
Why not just talk to a bankruptcy attorney right now? They usually don't charge for their initial consultation, and will help you figure out the best way to come up with cash to fix your car. Regardles of when you decide to declare.
2007-04-05 12:36:20 · answer #3 · answered by Perdendosi 7 · 0⤊ 1⤋
What are you going to say if the company tries to repossess the laptop after your BK? Here is a better idea...why dont you sell your car and pay off your laptop and any other bills you can. Im sure a city like Ontario has some kind of public transportation.
2007-04-05 12:30:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Contact the organization that financed your computer--most likely the manufacturer. They probably have a clause where you can transfer the remaining payments to a new customer, sort of like transferring the payments on a car. Keep in mind though that in that situation you would only really be able to sell the computer for a value proportionate to the amount you've already paid on it.
For example if your laptop cost $2000 and you've paid $500 so far, you wouldn't be able to get more than $500 for it.
2007-04-05 12:25:43 · answer #5 · answered by P.I. Joe 6 · 1⤊ 1⤋
well its not illegal but u can get in trobule for selling it while your making payments on it just like if i had a car that was still being payed on and i sold it then i would still have to make payments on it but why would u do that kuz all ull be doing is getting yourself into debt then ull have a bunch of debtors after you saying were collecting the payments on the unowed property
2007-04-05 12:27:28 · answer #6 · answered by ? 2 · 1⤊ 0⤋
You could try selling it on Craigslist. I was in the same situation with my 1 year lease on an apartment. We were able to get someone to take over the lease and move in for us. They will be able to take over the payments. The company that you got it from wont really care as long as they get paid for it.
2007-04-05 12:25:25 · answer #7 · answered by delnquent24 2 · 1⤊ 1⤋
You need to seek the advice of a lawyer in your area. It sounds like you are trying to commit bankruptcy fraud.
2007-04-05 12:40:34 · answer #8 · answered by www.lvtrafficticketguy.com 5 · 1⤊ 0⤋
Bankruptcy will make your question mute, sell it and include the debt in your bankruptcy.
2007-04-05 12:30:39 · answer #9 · answered by Anonymous · 1⤊ 2⤋
yes, dont sell it. technically it is not yours to sell yet.
2007-04-05 12:25:39 · answer #10 · answered by I know, I know!!!! 6 · 1⤊ 0⤋