QUESTION

What criteria needs to be met to obtain a no position letter to purchase a vehicle?

Asked on Aug 20th, 2014 on Bankruptcy - Nebraska
More details to this question:
We have no means of transportation and are currently in a rental car that needs to be returned.
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3 ANSWERS

Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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I would need to have some context to answer your question. Are you currently in an active bankruptcy? If so, what chapter and how long has your case been active? These details do make a difference in how you would proceed.
Answered on Aug 22nd, 2014 at 1:37 PM

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Commercial & Bankruptcy Law Attorney serving Powell, OH at Ronald K. Nims
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Some Chapter 13 trustees have well defined criteria that are posted on their websites but most review the debtors' proposals on a case by case basis. Generally speaking, if the new payment is roughly equal to or less than the payment on the old car and the interest rate isn't exorbitant (more than 15% isn't going to be acceptable) - the trustee will approve it.
Answered on Aug 22nd, 2014 at 1:36 PM

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A no position letter is used in some jurisdictions, but not in Nebraska. If you need to borrow funds for the purchase or lease of a vehicle, the Court must grant a motion to borrow funds. The motion must show that it is reasonable and necessary for your to borrow funds, and that you have the ability to repay the loan.
Answered on Aug 22nd, 2014 at 8:44 AM

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