Hi! I filed Chapter 13 in Sept 2005. I am direct paying my mortgage, home equity loan, and car lease payment. The car lease expires the 23rd of this month. I found a dealer willing to purchase the car and re-sell to me (with high interest of course). My atty will be submitting paperwork this Friday to the Trustee for "approval" to incur new debt. I asked my atty. if this is really "incurring new debt" or could it be considered a continuation of the lease (same car, same payment). He said it is incurring new debt. What is your opinion? I've also been told the Trustee here (Western Dist. of Texas) is back-logged and it may take 4-6 weeks before they approve the request. This is NOT good for me....the bank who holds the lease does not appear to be willing to extend the lease even 30 days which would be long enough for me to get approval to buy the car. All of my payments to the Trustee have been on time....as well as all of my "direct payments". What reasons would a Trustee NOT approve a request to purchase a car? I am a young 61 years old....have no spouse, no significant other, and no children. I desperaely need a car to travel to and from work, church, grocery store, doctor, etc. Any help or info anyone can provide will be greatly appreciated! Thanks!
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If you have a good Trustee then you shouldn't have a problem to get the motion passed by the court. Most lease companies will give you about 45 days. This isn't set in stone, but I am facing the same situation as you right now. I found new car and have requested to incur debt, but the Trustee objected citing that we are trying to cheat the creditors. Without a car, we will really be cheating the creditors. My husband won't be able to get to work to pay for the court payments. If you are paying directly, then speak with your lease company or finance company. Chapter 13 is tricky and often many plans fail. The failure rate is up because of the economy. Keeping in contact with your attorney is my best advice. -
It is definitely 100% a new debt.Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -RickComment
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