I am filing ch13; my wife is not. We will be returning aleased car this November and we want to lease another one, probably with lower payment. My wife doesn't make enough to qualify on her own and will need me as a coapplicant. Anyone see a problem with this? By November I will have already filed.
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Yes, I see a few issues.
By being a co-applicant, you would be equally responsible for the debt. In a CH13 you can not take on additional debt without the approval of the trustee. This might be something your trustee approves, but you definitely have to go through the process to get that approval.
Also, it doesn't seem like you would be a very good coapplicant if you have already filed for BK... I don't see how that can help her application. Maybe if it is simply a DTI issue, but seems like you would be a drag on the overall application with your BK.
Finally, how long will the lease be for versus how long will your BK be for? If it is a 3 year lease and you are in a 5 year bk, you need to be prepared to go to the trustee in 3 years to get approval to address your transportation needs. -
I know the F & I manager at the dealer well, for we have leased a few times from him. He mentioned that he looks at the higher credit score. The lease will be a three year lease, so I do understand the approval process. BTW, is a lease treated like a loan in the ch13 process? In any case, if I turn out to be a problem, then we will try to get my wife approved alone or get her mother to cosign or we become a onecar couple.Comment
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