I asked my attorney if I could surrender my current vehicle when I file Chapter 13 (3 weeks from now), and if I could purchase a new much more economical vehicle before I file. this is the response I got from her, I'm a little confused, especially on the part about a title. Can someone help me understand this?
"Under the new bankruptcy laws I am not allowed to advise or suggest that clients incur new debt prior to a bankruptcy filing. However, I can explain how debts are handled/paid in a Chapter 13 bankruptcy.
If a Ch13 Plan provides for surrender of a vehicle any debt remaining due following surrender would be subject to discharge along with other unsecured debts (and not paid through the Plan).
Any vehicle purchased within 4 months of filing a bankruptcy would need to show a secured party on the title to the vehicle (or other proof that the lien has been perfected) within 30 days of the loan date.
If debtors IN a Chapter 13 case want to incur new debt (such as a vehicle loan) the debtors must have permission from the Trustee, and if given, the debt is normally paid outside the Ch.13 Plan.
If a vehicle loan exists at the time the Ch.13 is filed, it must be paid through the Chapter 13 Plan. If the loan length is longer than the Plan length the Plan may provide for the Trustee to make the regular monthly payments to the
lender. If the loan length is less than the Plan length the entire loan amount gets paid through the Plan, with interest. "
"Under the new bankruptcy laws I am not allowed to advise or suggest that clients incur new debt prior to a bankruptcy filing. However, I can explain how debts are handled/paid in a Chapter 13 bankruptcy.
If a Ch13 Plan provides for surrender of a vehicle any debt remaining due following surrender would be subject to discharge along with other unsecured debts (and not paid through the Plan).
Any vehicle purchased within 4 months of filing a bankruptcy would need to show a secured party on the title to the vehicle (or other proof that the lien has been perfected) within 30 days of the loan date.
If debtors IN a Chapter 13 case want to incur new debt (such as a vehicle loan) the debtors must have permission from the Trustee, and if given, the debt is normally paid outside the Ch.13 Plan.
If a vehicle loan exists at the time the Ch.13 is filed, it must be paid through the Chapter 13 Plan. If the loan length is longer than the Plan length the Plan may provide for the Trustee to make the regular monthly payments to the
lender. If the loan length is less than the Plan length the entire loan amount gets paid through the Plan, with interest. "
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