Question about buying a car pre-Chapter 13

[EmmaPeel007]

I'm married but planning on filing CH13 on my own since 90% of the debts are in my name.

We have two cars that are fully paid off, but Im concerned that the truck won't make the full 5 years. Thinking about buying a new car.

My credit is getting hammered right now because I told my creditors I was filing BK. Cards are being cancelled.

If my husband buys a car now in his name only, will I get the auto ownership deduction or do I have to be listed on the title as well? Just thinking that if Im on there too it might either give us a sucky interest rate or they might turn him down.

[justbroke]

I'm no expert, but since he would be a non-debtor spouse, he can do what he wants. If the title is in his name, then you don't own it (not property of your bankruptcy estate).

I think the Trustee would not have a problem if the car was purchased for your use and you claim the ownership and operation expense.

In a Case in the U.S. Bankruptcy Court for the Northern District of Illinois, Judge Manuel Barbosa permitted the Local Standard ownership expense where the non-debtor spouse owed the car debt, but the debtor used the car. (This was so long as the debtor was paying the note on the car.)

You should talk to a couple of attorneys (initial consults are free), and pose this question. I'd ask it of at least two attorneys that you are considering to do your Chapter 13.