Borrowing While in Bankruptcy & Filing a Motion to Incur debt in Topeka, Kansas - Drivenowtopeka.com
A motion to incur debt needs written approval from a Chapter 13 auto loan trustee in Kansas or an administrator if the property or services for which you hope to get a loan are necessary and reasonable purchases, and repaying the new loan will not interfere with your ability to make Chapter 13 payments as planned. The bankruptcy trustee or administrator will most likely check to make sure your plan payments are current, review the loan terms, and review your current budget in order to make an informed decision about whether to allow the additional debt.
A Chapter 13 trustee or administrator is unlikely to approve a loan for luxury items, or a home loan where the monthly payment for the mortgage principal, taxes, interest, and insurance is significantly more than what has been budgeted for your housing in your Chapter 13 plan. In general, you probably will not be given permission to take on consumer credit that is not absolutely necessary. However the experienced team at Drive Now Topeka has experience necessary to work with you and the trustee to get you the auto financing you need to get a nicer, newer model car, truck or SUV. From Key auto manufacturers like Ford, GM, Dodge, Toyota, Honda, Hyundai, Nissan, KIA, Acura, Infiniti, GMC, Cadillac, Lincoln, Mercury and more!
As part of your request for approval from the trustee, you will have to submit the identity of the lender, the amount of the loan, the interest rate, the monthly payment amount to the lender, and the number of monthly payments you will have to make to repay the new loan. If the post-petition loan is not approved, the administrator or trustee will notify you in writing, and you may need to file a formal motion to incur debt with the court.
If you incur new substantial debts without prior approval from the trustee, the trustee and the court may see this as a choice not to comply with your plan or that you have more disposable income than stated that could be going towards your plan. This means that the trustee may ask the court to dismiss your case, the court may decide to dismiss your case, or the new debt may not be included in your discharge if you prove unable to pay it.
Although you usually need to obtain permission to incur additional debts during bankruptcy, there are some circumstances in which you do not need permission. These include incurring tax liabilities and & small debts as defined by your trustees rules and policies. You may not want to have the new debt included in your debt repayment plan. If you want to make payments to a new lender outside the plan and are not worried that the debt will not be discharged at the end of the plan, you do not need to ask the court for permission. However, you should be aware that your Chapter 13 trustee may object and ask the court to dismiss your case if you spend so much on the new debt that you miss your Chapter 13 payments .In most cases except for medical emergencies. it is wiser to ask the trustee and the court for permission before incurring any new debt especially on an auto loan.