Law Office of Ginger C. Cord, PSC. - Bankruptcy
Free Initial Consultation

Local 859-963-2073

Toll Free 800-762-6916

Call Today

Pursue A Bright Financial Future
[an error occurred while processing this directive]
Freedom From Debt Is On The Horizon

Accruing new debt during bankruptcy

Kentucky residents may be aware that they can buy a car during a Chapter 13 bankruptcy case. However, there is a process that must be completed in order to do so. The first step is to find a lender that is willing and qualified to work with those who have an open Chapter 13 case. Once an individual has found a lender, they will need to get a sample leasing statement.

The sample statement should have the interest rate, loan term and the price of the car that is to be purchased. In some cases, it may be a good idea to have the salesperson list the highest interest rate that the debtor may qualify for. This is because a debtor could have the motion to buy the car rendered invalid if they list an inaccurate interest rate.

The next steps include getting trustee and court approval. First, the motion to buy the vehicle is taken to the trustee, who will determine if the debtor actually needs the vehicle and how it may impact the current repayment plan. Then, the motion will be filed with the court and creditors who may or may not object to it. Finally, the court will approve or deny the motion. If the motion is approved, the transaction may be completed.

Debtors who are interested in retaining property may do so by filing for Chapter 13 bankruptcy. This may allow an individual to repay debts over a course of three or five years with wages or other steady sources of income. In some cases, debtors may be allowed to accrue new debt if necessary. An attorney may be able to help a client properly file for bankruptcy.

No Comments

Leave a comment
Comment Information