Farrah buys a car from Go Motors, financing the purchase through a loan. Less than a year later, she files for bankruptcy underChapter 13. Her plan must provide that Go has a lien on the car until the entire debt is paid

Question

Farrah buys a car from Go Motors, financing the purchase through a loan. Less than a year later, she files for bankruptcy underChapter 13. Her plan must provide that Go has a lien on the car until the entire debt is paid​

Quizplus · Accepted Answer

According to the Bankruptcy Code, if a creditor extends credit for all or part of the purchase price of a car, they have a security interest, or lien, in the car. Therefore, Farrah's plan must provide that Go has a lien on the car until the entire debt is paid, as Go financed the purchase of the car.

Farrah Buys a Car from Go Motors, Financing the Purchase