Information for Debtors

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:

  1. 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.
  1. Provide the name and fax number of the car dealer with request.
  1. If known, specify the Case Number associated with the request
  1. Email the Buyer’s Order to the paralegal contact on the Trustee Email Addresses link for the judge handling your case
  1. 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.