Car loan approval time

[getback]

I just got approved for a car loan up to 20k and I am in Chapter 13. I am looking for a payment around $400 per month at about 15% .

Here is my question, once I submit the terms to be motioned to the trustee and judge, how long does it take to get approved by the judge ?

Thanks

[justbroke]

You have this backwards. You were supposed to ask permission before you went and applied for financing.

Procedurally, you would file a Motion to Incur Debt and serve it on the Trustee. Depending on local procedure you'd either serve it with a negative notice, or request a hearing date by having the Clerk schedule a hearing. Depending on hearing dates, local rules on negative noticing, it could take 14-30 days for the hearing and motion to be granted.

[getback]

You have this backwards. You were supposed to ask permission before you went and applied for financing.

Procedurally, you would file a Motion to Incur Debt and serve it on the Trustee. Depending on local procedure you'd either serve it with a negative notice, or request a hearing date by having the Clerk schedule a hearing. Depending on hearing dates, local rules on negative noticing, it could take 14-30 days for the hearing and motion to be granted.

I meant to say that I called my lawyer this week asking about what I needed to do in order to get a car loan. He called his contact at the trustee's office. The contract at the trustee's office told him that I can start looking for loan conditions. Once I find out what it is available, I need to send him the info.

Apparently, my lawyer has never gone thru a mid plan revision.

[justbroke]

Okay, that sounds much better! As I wrote above, the Court approval part will probably be no more than 30 days. However, your lawyer, working with the Trustee, might be able to submit an agreed order granting the motion to incur new debt. That might speed it up a little (to 14 days or less).

[getback]

Okay, that sounds much better! As I wrote above, the Court approval part will probably be no more than 30 days. However, your lawyer, working with the Trustee, might be able to submit an agreed order granting the motion to incur new debt. That might speed it up a little (to 14 days or less).

thanks. it was late when I posed the question

If my lawyer is able to work with the Trustee, does that mean, that I can get a loan before it is brought up to a judge?

[justbroke]

If my lawyer is able to work with the Trustee, does that mean, that I can get a loan before it is brought up to a judge?

No. However, your attorney would file an "agreed" order and the Judge would sign it in a few days.

[getback]

No. However, your attorney would file an "agreed" order and the Judge would sign it in a few days.

so just to be straight, the trustee would approve it and it would go to the judge. So in theory I can move forward before the judge officially approves the motion as long as the Trustee says so?

[justbroke]

so just to be straight, the trustee would approve it and it would go to the judge. So in theory I can move forward before the judge officially approves the motion as long as the Trustee says so?

The Motion would need to be approved by the judge before you actually make the purchase. However, you would secure financing before submitting to the Judge so that the Motion before the judge includes the terms of the newly incurred debt.

[terryorr56]

more than likley the car dealership will require a copy of the signed letter from the court to incur debt, before delivering the car

[getback]

Once the judge approves the motion, am I allowed to go somewhere else for loan if the terms are he same?

[Flamingo]

Once the judge approves the motion, am I allowed to go somewhere else for loan if the terms are he same?

You would need to check with your attorney on that one. When the motion is approved and you are allowed to go through withi the credit, it is for the dealership from which you obtained all the financing information, etc. Same if there is a refinancing for a house or other credit needed during a Chapter 13. You just cannot pick and choose what you want to do while in a Chapter 13. Contact your attorney.

[Air00Max]

i'm just curious as to where people are actually getting APPROVED for car loans without a discharge! I'm in a bad situation...filed 13 and had my 341 meeting. My lease is ending, and I'm looking for a car that would be around $400 a month (lease was $550). I can't get an approval from anyone without the BK being discharged. Santaander approved me, but required I trade in my wife's car that is financed through them. I can't do that, because she needs her car too!

[lrprn]

I'm in a bad situation...filed 13 and had my 341 meeting. My lease is ending...

Although it's too late now, I'm curious. Since your lease is ending so soon after you filed, did your lawyer talk to you at all about replacing your car before you filed?

[Air00Max]

No, my lawyer never mentioned anything about replacing my lease. I asked him if it would be hard for me to get approved for a loan to get a new car, his response was simply "no."

[lrprn]

No, my lawyer never mentioned anything about replacing my lease. I asked him if it would be hard for me to get approved for a loan to get a new car, his response was simply "no."

Unfortunately as I think you are discovering, your lawyer's answer does not agree with the reality you are now facing

Go back to your lawyer and ask him/her if they know of any dealerships or smaller 'mom/pop' car lots that are better for those in Ch 13. The 'good ol boy/girl' lawyer network often has experience with clients needing to buy cars during Ch 13 so you might get a few recommendations of places to contact.

Good luck! Hope you find a car deal you can live with soon.