Is your old car in your Chapter 13 case meeting an untimely end? The good news is that you can usually buy a new car during your Chapter 13. How do you get a new (or used) car in Chapter 13? You just need to do three things. You need to contact a car dealer, have the car dealer fill out the Chapter 13 auto loan approval form, and get approval from your Chapter 13 attorney and the trustee.
Contact an Auto Dealer and Select a New Car
If you need to buy a new or used financed car in Chapter 13, simply contact a reputable car dealer. Make sure that you are approved for financing. It will be important that you inform the auto dealer right away that you are currently in Chapter 13. This is because the dealer will need to use a special procedure for the financing and to get the automobile approved later by your attorney and the Chapter 13 trustee. When you select the automobile, make sure to keep the payment and balance to repay as low as possible.
Have the Car Dealer Fill Out the Chapter 13 Auto Loan approval Form
Your auto dealer will fill your Chapter 13 Trustee’s auto loan approval form. If the dealer does not have this form, he can either acquire it on the trustee’s website or by calling the Trustee’s office. Remember, attempt to keep the payment and balance of the new auto loan as LOW as possible. It may also be easier to get a used car purchase approved easier than a new car because the balance and payment will likely be lower.
Get Approval from your Attorney and the Chapter 13 Trustee
Now your attorney and the trustee will have the exact details about the car you desire to purchase. They can now go about the approval process. During the approval process, they will likely require that you surrender your old vehicle or modify your Chapter 13 plan. They may also require that you file amendments to your expenses to show that your budget can afford the new vehicle. Your attorney will guide you through this approval process.
Remember, sometimes the Chapter 13 Trustee may reject a particular automobile purchase. Also, the Trustee may only let you purchase a new vehicle when you replacing a broken-down vehicle. However, if your purchase is rejected, many times you can work with your automobile dealer to lower the payments or propose some other solution. You usually can come up with a solution with your attorney, trustee, and auto dealer to get your new vehicle approved. The trustee wants you to have reliable transportation and will work with you to get you what you need.