Leasing or Buying a New or Used Car in a 13.

[ccmisery]

My wife's car is leased, the lease ends in about a year or so and I will need a replacement vehicle at that time. Is there anything I should do prior to my 341 to have it in the bankruptcy, lease or car purchase provision? I only know that if your in a 13 that the trustee or court has to have approval for any incurred debt I would rather have it done prior knowing it's going to happen. I also do not know how the interest rate plays into this? Do you get hit with higher APR or due to the 13 do they work with you?

I think that a 13 and a 5 year repayment plan is going to hinder any lease, new or used car purchase since financing will be difficult compared to a 7 which people seem to have better luck with after a year.

I was originally a 13, but back to a 7 now, I am on the verge of getting a job possibly, and I believe once this happens things might get interesting at my 341 next month.

[justbroke]

There is at least one bank (USBank) that may offer loans during a Chapter 13. You are not prohibited from obtaining loans, you just need permission. If you are going in to a Chapter 13, you should always assess your transportation needs and acquire new vehicles prior to entering the Chapter if your needs require such. If you are in active bankruptcy, you will have a higher rate. If you already filed, the bank will almost certainly demand Trustee approval in writing (even if you're pre-confirmation).

I would have hoped that the lease was factored and considered prior to filing a Chapter 13. I would be especially prepared when it comes to a lease which would end just 1 year into a confirmed Chapter 13 plan. If the transportation was necessary, I would have replaced the vehicle prior to filing. There are some other considerations if you are the only one filing or in bankruptcy.

It's not that you are without options, it's just that they become more constrained. The APR would be painfully high (probably high teens into the low to mid twenties!).

[ccmisery]

I figured that, I was only able to finance one car, could not get two based on my wife not having a job at the time and then I lost mine 2 months after purchase. So both cars are current, it's just that the lease is a dilemma we have to face. I just don't want to get wrapped up in a 13 and be making monthly payments that could otherwise be used to save up for a used car in the $5K to $8K price range that we could possibly pay cash for next year when the lease ends.

We filed as a 7, but I feel I am close to landing a job and afraid the trustee will request conversion to a 13 at the 341 next month once they are made aware of it.

[justbroke]

Typically, Trustees do not care about a job that you "might" start. A job "offer" is not a job. Trustees usually do not care if you found employment after you filed; so long as there is no appearance that you "manufactured" your job loss so that you could file and receive a Chapter 7 discharge.

Let's just concentrate on getting through the Chapter 7 and the 341 Meeting and not worry about the what ifs. As a former bankruptcy individual, I see too many cases in which we concentrate too much on the what ifs and worry about everything. The supermajority of cases have absolutely no issues.

[ccmisery]

I got an official letter on company letterhead stating the reasons why I was terminated, I suppose I'll bring that to my 341 just in case it comes up.

I know, I need to stop worrying, my lawyer told me the same thing. Said the meeting with the trustee will last 5 minutes if that.