You've just filed Chapter 13 and your old car has finally gone kaput.
Afraid that you'll be limited to paying for another clunker at a Buy Here Pay Here lot?
Isn't there a better option?
In many cases, the short answer is "Yes".
Under a Chapter 13 bankruptcy in the State of Florida, the law states that you may not incur new debt without permission of the trustee or the court.
This is done by submitting a Request to Incur New Debt with the trustee of your case.
- These requests are routine and frequently granted.
- The request looks at your disposable income and your ability to pay.
- If the trustee signs off on the request, you can buy the vehicle.
- The trustee should approve the request unless he or she decides that you cannot afford the new payment.
- If the trustee denies request, your bankruptcy attorney will file the Request to Incur New Debt with the court and ask the judge to override the trustee's denial. This dictates whether you can buy the car or not.
