Because of the fact that a Chapter 13 bankruptcy will normally take 36 months to 60 months to complete, it is a common occurrence that a debtor’s car will need to be replaced during the life of the Chapter 13 Plan.
Generally speaking (and assuming you qualify for a car loan) the Court will approve the purchase of a vehicle to replace a used vehicle during a Chapter 13 bankruptcy.
A motion will need to be filed with the bankruptcy court seeking permission to purchase the vehicle, so do not sign any agreements to purchase a new vehicle without first getting the Court’s permission.
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Last modified: December 13, 2009