The justification for purchasing a vehicle must be reasonable, and if the trustee does not object to this reason, the request will be granted. They also must describe why purchasing a vehicle is necessary. The attorney must state in this application not only the loan amount for the vehicle and the monthly payments. The individual’s bankruptcy attorney then submit an application to incur debt – purchase a new or used vehicle with the trustee. Though the car dealer must provide the court what is called a term sheet, which shows the term of the loan and the amount of interest to be paid, along with the make, model, year and price of the vehicle. Any contract involved will also be made only between the car dealer and the individual and will not be included within the scope of the bankruptcy. Any loans that are taken out in order to finance the vehicle are paid by the individual in bankruptcy directly as opposed to by the trustee. Once this condition is met, a person must find a vehicle whose monthly payments are affordable. Schedules I and J reflect a person’s income and expenses, and they must demonstrate that this person has sufficient means to buy the vehicle while continuing to meet the regularly required bankruptcy payments. When purchasing a vehicle, an individual in bankruptcy must first determine if they can afford the payments. But it is important for such people to purchase modestly priced vehicles as opposed to luxury cars. Being in bankruptcy does not mean that someone must go without a car or with one in poor condition. According to the law, those under this type of bankruptcy protection must get court approval before incurring any and all new debts during the 3-5 years that they are making bankruptcy payments. It is not unusual for Columbus residents who are under Chapter 13 bankruptcy protection to need a car. Getting a car while in a bankruptcy case in Columbus, Ohio
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