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Can I Buy A New Car In Chapter 13?

Can I Buy A New Car In Chapter 13?


I filed a Chapter 13 case, but my car died.
Can I go out, and assuming I can get a loan, buy a new car when I’m in Chapter 13? My name
is Ron Drescher. I’m an attorney practicing bankruptcy and creditors’ rights in Maryland,
Delaware, Pennsylvania and Virginia, and the good news is yeah, the bankruptcy system is
set up for you to be able to go out and buy a new car. You go out to the dealer, you get
your deal, you contact your bankruptcy lawyer. We file a motion with the bankruptcy court,
asking for permission to buy the car. We send the terms and conditions of the new car loan
to the trustee, give the trustee a chance to assess whether or not this is okay and
what impact that’s going to have on creditors, and most times, it’s going to work out, and
you’ll be able to buy that car, and it’ll take up to 30 days if your bankruptcy lawyer
does it right and knows what they’re doing. So the good news is yes, if you’re in Chapter 13,
you got to get a new car, you’ll be able to do that. My name is Ron Drescher. I’m an attorney
practicing bankruptcy and creditors’ rights, and if you have a question about how you go
about getting a new car in a Chapter 13 case, please pick up the phone and call me. I would
love to hear from you.

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