The motion will request that the court issue an order allowing you to proceed with the purchase and financing of the vehicle based on the terms outlined in the motion. You may also need to modify your Chapter 13 Plan. In some cases you may be able to reduce the amount paid to unsecured creditors in order to afford the new car payment. Your attorney may also need to amend your bankruptcy schedules.
Once you receive the court’s permission, you can go car shopping! Unless you have already obtained financing, you will need to seek a loan from one of the car dealer’s lending sources. This often requires substantial leverage and influence, so generally dealing with a large dealer is preferable over a smaller dealership. Larger dealerships are often better at overcoming difficult credit issues, such as an open bankruptcy case. It may also be worth a telephone call to the dealership to discuss your situation before actually visiting the lot.
Be upfront with lenders about your credit situation and why you need a car; lenders that aren’t willing to work with you will be honest about that and it’ll save you both a little time and aggravation. When you do find lenders willing to work with you, be ready to offer up any information they need and to put them in contact with your lawyer or your trustee. Even the most open-minded lender will proceed cautiously; don’t expect any “instant” approvals.
Take the paperwork from the court and bring it to the dealership to complete the auto loan process. Thats 2 approvals.
