Can I get a car loan in a chapter 13?

[mountanddo]

I have about 14 months left in my chapter 13. My 1996 Sunfire is on it's last legs and while it still works I am afraid to drive it because something will inevitablly go wrong and it will need to be towed. I've been told that it isn't worth to fix what is wrong with it. I am thinking of just junking it. yes, it's that bad.

While I can survive without a car I wondering if I would find a dealer that would give me a loan while still in chapter 13 and if the trustee would even approve it. I know the interest rate would be high and will probably just wait until I'm discharged. I don't want to get into another situation where I am nickel and dimeing a car that will need expensive repairs so that is why I want to buy a used car from a dealer rather than cash with a private party.

[justbroke]

You will need Trustee approval and, more importantly, a lender that will lend to you with that Trustee approval! It is quite common for people to receive court (and Trustee) approval to incur debt to replace a car, while in an active Chapter 13. The major question is the impact on your plan and your finances!

[AngelinaCat]

Here is another CH13 with a similar situation:

http://www.bkforum.com/showthread.php?81037-Urgent-car-purchase-help-active-chap-13

[mountanddo]

Ugh! I'm afraid since I didn't have a car payment if I can show I can afford a car note they may deny it and up my payments. I specifically moved and lowered my expenses so that I had extra disposable income but I don't want to have to submit all my expenses to the trustee again and risk having them raise my payment.

[AngelinaCat]

Can you/have you saved some money up and can afford to pay cash for something nice offered by a private seller? That way you would avoid all the questions from the trustee, and NOT have a monthly payment.