Legal Question in Bankruptcy in Texas

chapter 13 disposable income

My wife and I are going to file a chapter 13, immediately after selling our present home and buying a much less expensive one. We only have one car, which is worth about 13K and on which we owe about the same. I would like to purchase a new car since I won't be able to get one for a few years after bankruptcy. My question is this; are cars paid out of my payback plan or do I have to pay them IN ADDITION to the amount of the payback plan? Also, will the court look with disfavor over my purchase if it is too close to the time 1 file?


Asked on 10/10/02, 6:43 pm

1 Answer from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: chapter 13 disposable income

You have the option in terms of the chapter 13 repayment plan. You can either pay the car loan directly by continuing to make your regularly monthly car payments per your contract/loan, or you can put this debt in your plan. The trustee will review your schedules and in all honesty probably won't know when you purchased your car. However, I would not get too expensive (luxury) of a vehicle. In Texas each family member of driving age is entitled to a vehicle free from creditor claims. In other words, no creditor (nor the bankruptcy court) can force you to sell your cars to repay debts. Please feel free to call me to discuss your particular situation in more detail. ph. (214) 979-7330 or (800) 303-0720

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Answered on 10/10/02, 9:30 pm


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