If you need to purchase a vehicle while you are in a Chapter 13, please provide me with ALL of the following information:

  • Retail Sales Contract/Purchase Agreement from the auto dealer (must include year, make and model of the vehicle you intend to purchase and its mileage, as well as the loan amount, interest rate, term of loan and monthly payment
  • Letter of financing approval from dealer or lender
  • A brief statement from you that explains why you need a new vehicle and which vehicle this will replace
  • The amount and source of any down payment (such as trade in, cash savings, gift from family members, etc.)
  • A description of which vehicle you are trading in, if any, and the number and type of other cars you still own
  • If you are replacing a vehicle because of repairs, a written estimate of repairs from a mechanic
  • 90 days of the most recent pay advices from both you and your spouse

Please note that in most cases, your new vehicle will be paid by you outside your plan and in addition to your regular Chapter 13 plan payment. New income and expense schedules will be filed that may cause your plan payments to increase as well.