Welcome Letter to Debtors rev, 10/19/15
Buying or Leasing a Car While in Chapter 13
If a debtor wishes to purchase or lease a car, he/she should seek authorization from the standing trustee. The standing trustee provides authorization letters ONLY on confirmed cases in which plan payments are current.
To request authorization:
- Obtain the Buyer’s Order from the dealership. It must include the following information:
- Model and make, including year
- Monthly payment
- Length of the loan
- Total amount financed
- Interest rate
- Trade-in information, if applicable.
- Provide the name and fax number of the car dealer with request.
- If known, specify the Case Number associated with the request
- Email the Buyer’s Order to the paralegal contact on the Trustee Email Addresses link for the judge handling your case
- If the request meets the requirements, the letter will be forwarded to the dealership and a copy sent to debtor’s counsel. We will contact you if additional information is needed.
Note that if a case is unconfirmed, an order authorizing the purchase or lease from the bankruptcy court must be obtained, upon a Motion to Incur Debt.