Legal Question in Bankruptcy in Massachusetts

ch. 13 discharged

I filed for a Chapter 13 about 10 months ago. Recently my car broke down and now I have to buy a new one. I have gone to several lenders advertising that they will approve auto loans for people who have poor credit and have filed for bankrupcy. They have all turned me down because it has not been discharged yet. They said that if it was a chapter 7 it would have been no problem. I don't understand. I thought when I chose to file a 13 rather than a 7 it would look better on my credit history because I was actully paying something back. Is there any hope of me ever getting a loan like this again? Do you know of anything I can do such as paying my ch 13 off early? Thanks.


Asked on 3/07/04, 9:47 am

1 Answer from Attorneys
David Baker Law Office of David Baker

Re: ch. 13 discharged

Hi. The problem is that while you're in chapter 13, you have to get the judge's permission to borrow money, that is to get a car loan. It really is not that big of a deal, but I guess the people you have been to don't want to be bothered. You can pay off your Chapter 13 early, but there are special rules if you do. You should talk to your lawyer about it. If you don't have a lawyer, call me to discuss it further. 617-367-4260

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Answered on 3/07/04, 3:49 pm


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