Buying a car in ch 13 with a twist.

[Redsox]

Hi all, after 2.5 years finally getting confirmed and just waiting for the trustee to set the date for the hearing. Payments went from 1200 to 1600. Sucks but we will make it.
I have a question for the folks here...we need to purchase a new car as my lease is up next month. My attorney is filing for motion to incur debt. Can my Father purchase a car and then i pay him for the car as a creditor? He would get a better rate than I would if i got the loan. Would the trustee allow that? TIA

[despritfreya]

I see no problem with dad purchasing a vehicle and you using that vehicle. You would be paying for the use of it (kind of like renting but with no written agreement) and you would make payments either directly to the lender on dad’s behalf or to dad. Since you would not be incurring secured debt there would be no need to file a Motion. So long as the payment on this vehicle is similar to the payment for the lease that is now up nothing would change as it relates to your confirmed plan. The only problem I see is that the vehicle will have to be insured by dad with you as an authorized driver. If you get into an accident, dad will be “on the hook”.

Discuss this with your attny.

Des.