Just curious. What are the penalities for acquiring an auto loan (with out court approval) while in a Chapter 13 plan if all payments are made ontime to the trustee and to the new financer of the automobile. Thanks for the help!!!
Just curious. What are the penalities for acquiring an auto loan (with out court approval) while in a Chapter 13 plan if all payments are made ontime to the trustee and to the new financer of the automobile. Thanks for the help!!!
Contact the attorney who filed your Ch 13 petition and ask him. I'm not a lawyer, but worked for bankruptcy lawyers for several years. If I remember correctly, you are forbidden from incurring post petition debt prior to completion of your plan and discharge, without court approval. If you are not going to be paying for the new car through the plan, how can you afford the monthly payments, since everything you make net of exemptions and living expenses should be going to the trustee for distribution to your creditors.
If any of your other creditors "get wind" of your new purchase, they could file a motion to the court to find you in contempt, move for a dismissal of your case, or seek to increase distributions to them in light of your ability to incur new debt.
Don't do it. You can buy a car after 13 if the one you have is falling apart and they allow that and undestand, BUT, If you try to pull that off and the judge finds out (and he will-I promise) he will be less than polite in his ruling against you. You could have your bankrupcy thrown out and be in worse condition.
As stated-if your car is junk, be open with them, they do allow it. If you think you will go out and buy a 45K SUV and hide it -the judge will slam dunk you.