Leasing a car before bankruptcy discharge.

[mjodis91]

Hello

I am posting this question on behalf of my parents. My parents filed for Chapter 13 Bankruptcy plan in 2011. We been having car troubles since last year. We fixed it last year and it held up pretty well. I learned today that the transmission on our car has been shot. My parents are in a bad situation because they have about 6 months or less in bankruptcy. We cannot do anything right now because my parents do not have the money to fix the car nor we cannot lease a new car on account of being stuck in paying off the remaining bankruptcy payments. My parents don't have a savings account. We fortunately have transportation arranged to get around. I know this is a long-shot but what option do my parents have in this situation?

[justbroke]

If your parents can't be credit approved for a new vehicle, then the only way would be cash or someone else co-signing (guaranteeing) the loan.

Your parents could seek permission to incur debt in their Chapter 13. Some issues would be whether they have a current car payment. If they do not have a car payment, then finding the money to fund a new car purchase/lease could be an issue in their Chapter 13. Additionally, the plan must remain feasible -- meaning that they must be able to afford the Plan while satisfying the terms of the plan.

The best thing is always to speak with your Chapter 13 attorney.