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A debt associated with the purchase of a car that was to be used as an Uber vehicle was held to be dischargeable in a recent decision from the Bankruptcy Court for the Northern District of Illinois.
The Debtor, Rodriguez, thought that he could supplement his income by becoming an Uber driver. When he signed up, Uber directed Rodriguez to an auto dealer that it worked with and told him to purchase a larger vehicle suitable for Uber. Within a month of the purchase of the auto, Rodriguez decided that things did not work financially and filed for Chapter 7 relief.
The company that financed the car requested that Rodriguez reaffirm the debt but Rodriguez refused. After this refusal, the finance company filed an adversary proceeding to have the debt declared non-dischargeable based on false pretenses and other grounds. After a trial, the Bankruptcy Court found that even though Rodriguez filed for bankruptcy protection within a month of the purchase, the car had not been purchased under false pretenses, knowing that he would file. Rodriguez testified that he realized that the Uber program would not earn him sufficient money to afford the vehicle. The Court also pointed out that Uber sent Rodriguez to the dealership and had some sort of existing relationship with it. Based on all this, after a trial, the debt was declared dischargable. Read more on this case.