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Open Chapter 13 car loan - Lender that does not need trustee approval??

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Open Chapter 13 car loan - Lender that does not need trustee approval??

Yes I know you are not supposed to buy a car without trustee approval.  This is for informational purposes, and Im asking for a friend.

 

So Im asking, does anyone know of any auto car lenders that will approve you with decent scores and income even though you are in an active chapter 13?  Meaning they will not require a trustee letter?  

 

Again, informational asking for a friend.  

Message 1 of 7
6 REPLIES 6
Community Leader
Valued Contributor

Re: Open Chapter 13 car loan - Lender that does not need trustee approval??


@YoureWelcome wrote:

Yes I know you are not supposed to buy a car without trustee approval.  This is for informational purposes, and Im asking for a friend.

 

So Im asking, does anyone know of any auto car lenders that will approve you with decent scores and income even though you are in an active chapter 13?  Meaning they will not require a trustee letter?  

 

Again, informational asking for a friend.  


It does not matter what what the car lenders policy is, you must get the trustees approval while in an active 13 as far as I know to finance a vehicle. So I would advise against that for your friend.

 

Unless they buy a car with cash, otherwise financing would need approval from what I have seen/read.

Message 2 of 7
New Contributor

Re: Open Chapter 13 car loan - Lender that does not need trustee approval??

Yes and no.  Yes I understand you need this from the trustee, but there are lenders that dont recognize that in their lending policies.  I know they are out there.  Penfed is one.  But Im looking for others.  Again if anyone knows of one, please post it up for informational purposes.

Message 3 of 7
Community Leader
Valued Contributor

Re: Open Chapter 13 car loan - Lender that does not need trustee approval??

Again it doesn't matter what any lenders policies are, if "your friend"  is purchasing a vehicle and doesn't infom  the trustee of this purchase that is not good.

Message 4 of 7
New Contributor

Re: Open Chapter 13 car loan - Lender that does not need trustee approval??

You are not understanding what Im asking.  Again, I understand what you are saying.  And MOST lenders have internal policies that prevent them from lending to someone that has an open chapter 13 unless they provide the court approved letter allowing them to inccur debt.  I get that 100%.

 

Ok, so beyond that, there are also lenders that either do not identify a chapter 13 as a bk, or dont have policies against lending to people that have an open 13 without trustee approval.  Do you understand?  I would like to know of lenders that do not require the trustee letter, and will lend to you without it.  I dont think I can be more clear here.  Thanks.

Message 5 of 7
Community Leader
Valued Contributor

Re: Open Chapter 13 car loan - Lender that does not need trustee approval??


@YoureWelcome wrote:

You are not understanding what Im asking.  Again, I understand what you are saying.  And MOST lenders have internal policies that prevent them from lending to someone that has an open chapter 13 unless they provide the court approved letter allowing them to inccur debt.  I get that 100%.

 

Ok, so beyond that, there are also lenders that either do not identify a chapter 13 as a bk, or dont have policies against lending to people that have an open 13 without trustee approval.  Do you understand?  I would like to know of lenders that do not require the trustee letter, and will lend to you without it.  I dont think I can be more clear here.  Thanks.


I understand what you are saying , however even if you find a lender that will do that, what do you think will happen when the trustee finds out??

 

Wouldn't even remotely try that.

Message 6 of 7
Regular Contributor

Re: Open Chapter 13 car loan - Lender that does not need trustee approval??


@YoureWelcome wrote:

You are not understanding what Im asking.  Again, I understand what you are saying.  And MOST lenders have internal policies that prevent them from lending to someone that has an open chapter 13 unless they provide the court approved letter allowing them to inccur debt.  I get that 100%.

 

Ok, so beyond that, there are also lenders that either do not identify a chapter 13 as a bk, or dont have policies against lending to people that have an open 13 without trustee approval.  Do you understand?  I would like to know of lenders that do not require the trustee letter, and will lend to you without it.  I dont think I can be more clear here.  Thanks.


Good luck with this slippery slope.  

Message 7 of 7
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