Many clients need to purchase a vehicle while they are in their Chapter 13 bankruptcy. To purchase a vehicle, we must get Court approval for the purchase and be able to show the client can afford the car payment, Chapter 13 payment, and all other monthly expenses. The vehicle must be necessary for the household, usually clients purchase vehicles when an old one has gone into disrepair. Below are the steps one must take to purchase a vehicle while in bankruptcy.
- Find someone to finance the vehicle
- Get all the terms of the loan
- Bring this information to me
- Draft new budget with the car payment in the budget
- I will file a Motion for approval with the Court and file the new budget
- Have to set it for hearing, usually about 30 days out depending on the Judge’s calendar
- If approved have to get both the Trustee and Judge to sign the Order
- You can purchase the vehicle
If you have any questions regarding this process, please call our office. 404-255-3837