"No Mercedes for You," said the Bankruptcy Judge
My Chapter 13 client totaled his car and needed to replace it. The insurance property damage settlement was small so he needed to take out a loan to purchase a replacement vehicle.
In Chapter 13, you cannot incur new debt without permission from the judge, so I filed a motion in bankruptcy court to ask the judge to allow my client to incur new debt while in Chapter 13.
At the hearing on our motion the judge asked “what type of car does your client intend to buy?” My client had located a used Mercedes in the $20,000 range so I reported that to the judge.
The judge thought for a second then advised me that she would grant permission for my client to take out a loan, but he would have to find something other than a Mercedes. “I have a hard time allowing a Chapter 13 debtor to buy a luxury vehicle while he in bankruptcy,” said the judge. “He needs to find something more utilitarian.”
The judges’s position on this Mercedes loan should serve as a reminder that when you enter a Chapter 13 payment plan, you lose control over some aspects of your financial life. Judges and Chapter 13 trustees expect you to eschew luxuries or even perceived luxuries. While in Chapter 13 you should expect to limit eating out, long vacations and even extras that you might want to spend on your kids.
Chapter 13 trustees will demand that you allocate every spare dollar to your Chapter 13 plan - sometimes to the point where you won’t have money for life’s emergencies. As your lawyer, I try to push through a budget that has a more realistic flavor so that you can survive a 5 year Chapter 13 plan.
If you choose financial reorganization under Chapter 13 you need to know what to expect, but positive and negative. If Susan Blum or I can help you with this analysis, please call us at 770-393-4985.
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==========================================
Jonathan Ginsberg
Atlanta Bankruptcy Attorney
http://www.atlanta-bankruptcy-attorney.com
Facebook: https://www.facebook.com/ginsberglaw
Telephone: 770-393-4985
Видео "No Mercedes for You," said the Bankruptcy Judge канала Personal Bankruptcy Law Atlanta
In Chapter 13, you cannot incur new debt without permission from the judge, so I filed a motion in bankruptcy court to ask the judge to allow my client to incur new debt while in Chapter 13.
At the hearing on our motion the judge asked “what type of car does your client intend to buy?” My client had located a used Mercedes in the $20,000 range so I reported that to the judge.
The judge thought for a second then advised me that she would grant permission for my client to take out a loan, but he would have to find something other than a Mercedes. “I have a hard time allowing a Chapter 13 debtor to buy a luxury vehicle while he in bankruptcy,” said the judge. “He needs to find something more utilitarian.”
The judges’s position on this Mercedes loan should serve as a reminder that when you enter a Chapter 13 payment plan, you lose control over some aspects of your financial life. Judges and Chapter 13 trustees expect you to eschew luxuries or even perceived luxuries. While in Chapter 13 you should expect to limit eating out, long vacations and even extras that you might want to spend on your kids.
Chapter 13 trustees will demand that you allocate every spare dollar to your Chapter 13 plan - sometimes to the point where you won’t have money for life’s emergencies. As your lawyer, I try to push through a budget that has a more realistic flavor so that you can survive a 5 year Chapter 13 plan.
If you choose financial reorganization under Chapter 13 you need to know what to expect, but positive and negative. If Susan Blum or I can help you with this analysis, please call us at 770-393-4985.
==========================================
**Click Below to SUBSCRIBE for More Videos:
http://www.youtube.com/subscription_center?add_user=ginsbergbankruptcy
==========================================
Jonathan Ginsberg
Atlanta Bankruptcy Attorney
http://www.atlanta-bankruptcy-attorney.com
Facebook: https://www.facebook.com/ginsberglaw
Telephone: 770-393-4985
Видео "No Mercedes for You," said the Bankruptcy Judge канала Personal Bankruptcy Law Atlanta
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30 июня 2016 г. 20:21:40
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