Can I get a car loan before filing a Chapter 13?
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Can I get a car loan before filing a Chapter 13?
My company closed and I was unemployed for 16 months and got way behind on my credit card bills. I finally good a great paying job, but feel like the only way to get out of this hole is to file a Chapter 13. I also need a good car for work travel and want to buy a new car. Can I accept a car loan for a car and then file Chapter 13? Now that I have a good income coming in, I can afford to pay for a car and put money towards the Chapter 13.
Asked on August 18, 2011 Tennessee
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
Yes, there should be no problem getting a car loan prior to filing your chapter 13, as long as it is a reasonable amount (don't try to finance a Ferrari). A vehicle is considered a necessary living expense--at least in most states. Just make sure it isn't a luxury car and you should be fine.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Follow Me on Twitter: @bklawr
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
Yes, there should be no problem getting a car loan prior to filing your chapter 13, as long as it is a reasonable amount (don't try to finance a Ferrari). A vehicle is considered a necessary living expense--at least in most states. Just make sure it isn't a luxury car and you should be fine.
Mark J. Markus, Attorney at Law
Handling exclusively bankruptcy law cases in California since 1991.
http://www.bklaw.com/
Follow Me on Twitter: @bklawr
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