Chapter 13 Bankruptcy

In this process, we will put together a repayment plan that allows you to catch up missed payments and pay off a portion of your outstanding debt over time, that most importantly fits within your budget. The repayment plan usually lasts 36 to 60 months and is controlled by several factors that will be discussed in your initial consultation. If you live in North Georgia, schedule a free consultation to see if bankruptcy is a good fit for you and your family.

Yes. Your assets will not be sold when you file for Chapter 13 protection. This is often the best solution if you want to keep your assets, including your home and car.

The process for Chapter 13 bankruptcy is a bit more complex than Chapter 7. The whole process typically takes somewhere around 3-5 years (36 months to 60 months) and is concluded upon completion of your plan payments.

Step 1: Find a Lender Willing to Work with You

1. Some lenders specialize in financing vehicles for individuals in Chapter 13 bankruptcy.
2. You will need to inform the lender that you are in an active bankruptcy and that court approval is required.
3. Once you receive a preliminary loan offer, be sure to obtain the loan terms in writing, including the interest rate, loan amount, and monthly payment.

Step 2: Notify Our Office

1. Once you have a loan offer, please provide us with the details so we can prepare a motion to request court approval.
2. We will need to show that the loan is reasonable and necessary for your transportation needs.

Step 3: Filing a Motion with the Bankruptcy Court

1. Our office will file a formal motion with the court requesting permission to take on the new debt.
2. This motion will outline why the vehicle is necessary, how the new loan fits within your Chapter 13 repayment plan, and why the terms are reasonable.
3. The court typically allows creditors and the trustee an opportunity to object before granting approval.

Step 4: Court Review and Approval

1. In most cases, approval can take 2-4 weeks, depending on the court’s schedule and whether there are any objections.
2. If the court approves the request, you can proceed with finalizing the loan and purchasing the vehicle.

Important Considerations

• Make sure the vehicle is reasonably priced, as the court is unlikely to approve luxury or high-cost purchases.
• Keep insurance coverage in mind, as the lender will require it, and your bankruptcy trustee may have specific requirements.
• Avoid making any commitments or signing loan agreements before court approval is obtained.