Can I Purchase a Vehicle in a Chapter 13 Bankruptcy?

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The short answer is yes.  However, there is a bit of a process behind purchasing a vehicle in a Chapter 13.  First, your budget needs to be reviewed.  This requires your bankruptcy attorney to review your income and your expenses to make sure you can afford to have an extra payment in your budget.  Once it has been established that you are able to make a new car payment, a request to purchase a car must be made to the Bankruptcy Court.  This is done through a process called a Motion to Incur Debt.

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After your bankruptcy lawyer files the Motion to Incur Debt the bankruptcy judge will evaluate your situation to make sure that you can make the monthly payments without any problems. If there are problems, they will deny your ability to get financing for the vehicle. It is the judge’s job to make sure that you do not incur new debt and end up in the same situation that caused you to file bankruptcy in the first place.

What if you plan to buy a car without financing?  You will still need to obtain permission; additionally, you will need to explain where the lump sum of money came from.  It is always best to discuss this possibility with your attorney first to remove any possible issues that may arise from the access of extra money.

Am I Responsible for the Loan On My Car If I Voluntarily Turn it In?

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You will still be responsible for the loan or debt on your vehicle even if you voluntarily turn it in. If you have a vehicle that you cannot make payments on, you have the choice of voluntarily surrendering the car or you can let the creditor repossess it. What many people do not know is voluntarily surrendering the vehicle is still considered a reposession on your credit report, a voluntary reposession.

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Do I Have to Pay my Homeowner’s Association Dues after Filing Bankruptcy?

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Am I Required to Pay Property Taxes On My Vehicle if I Surrender it in Bankruptcy?

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What Happens If We Get A Divorce While in A Chapter 13 Bankruptcy?

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What is a Motion to Avoid a Judicial Lien in Bankruptcy?

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What Are the Most Common Reasons A Bankruptcy Case is Dismissed?

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There are numerous reasons a bankruptcy case may be dismissed. A dismissal of a bankruptcy case is when the federal judge issues an order terminating a case.  Usually the debts are not eliminated if the case is dismissed.  In contrast, a “discharge” means the debts have been eliminated.  Listed below are the most common reasons a bankruptcy case could be dismissed:

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1)    The debtor gives a false oath or information on the bankruptcy petition with the intent to defraud creditors,

2)    The debtor has filed a previous bankruptcy within a certain time period and is not eligible to file another bankruptcy and receive a discharge of the debts,

3)    The debtor has not filed all the required documents with the bankruptcy court,

4)    The debtor did not take and complete the required court approved credit counseling and/or financial management courses as required by federal law,

5)    The debtor fails to provide certain documentation to the bankruptcy Trustee upon request of such documents by the Trustee,

6)    The bankruptcy Trustee has objected to the discharge of the debtor’s debts based upon his investigation of the debtor,

7)    In a Chapter 13 repayment plan, the debtor fails to make the required Chapter 13 plan payments to the Chapter 13 Trustee,

8)    The debtor has non-exempt property and fails to turn such property over to the Trustee upon request,

9)    The debtor fails to obey a lawful order of the court, and

10) The bankruptcy judge believes there is good cause to deny the debtor a discharge and dismisses the bankruptcy case.

In conclusion, the above list is not exhaustive, but does highlight some of the most common reasons a bankruptcy case could be dismissed.

Can Children Attend the Creditors Meeting?

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The creditors’ meeting is a serious affair and can take several hours. Most children (adults too) will find it boring and may not be able to sit still that long. While you may bring your child with you, if he or she can’t remain quiet and sit still for an extended period of time it may be best to find some kind of child care. The Bankruptcy Trustee will want your full attention and will not look kindly on disruptive children.

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At the same time, if you have a young child and cannot get reasonable child care then you can bring your child to the creditors’ meeting. As with most areas of the law, the different courts and trustees may vary on their tolerance of children at the creditors meeting so be sure to ask your bankruptcy attorney specifically about your areas courts and trustees.