Car accident

[stratamet]

Well, I knew things were going a bit too good. I have 7 months left of a 60 month chapter 13 (yes, the light is shining bright at the end of the tunnel), and was in an car accident last week. The verhicle is totaled, and the loan is being payed through the chap 13. Since I am so close to the end, the remaining balance (as near as I can figure) is less than what the insurance company will give me. My question is; has anyone tried to get a car while in chap 13? How long does it take to get approval from the trustee? I really do not want a car payment, as I pay all bills like clockwork without any problems, this just throws a wrench into the gears.

[rrockinggramma]

obtaining a car loan while in a chapter 13 is terribly hard. My experience is that no lenders will even talk to you. Since you are sooo close to the end, perhaps you could just borrow something for now or scrap up some cash (in a chapter 13 , yeah right) and get a beater to drive for a minute. The insurance payment will go through the trustee etc and even though he will most certainly grant you permission to get another vehicle, I doubt seriously anyone would loan to you until discharge. You might try your credit union though, armed with the letter from the trustee giving permission. But good luck!

[stratamet]

Thanks for the reply. You hit the nail on the head with the buying a beater statement. That is exactly what I want to do (I HATE car payments, biggest waste of money, absolutley no ROI). Hopefully, and I have no idea how this will work, if the insurance company pay's the trustee directly, I will get some money back. In looking on the NDC, I only owe $2000, and the insurance company values the car at $8000. Maybe I will get lucky and get that extra money back so that I can use it to pay cash for a car.

[Spartan]

$6000 can get you a very solid used car that will likely to last for years.

[PI_Lvr]

I would still discuss this with the Trustee directly to make sure they don't take that extra $6k and put it towards the rest of your BK13. Good luck.

John

[SinkingFast]

I would **think** at the very least, you would get your Vehicle Exemption money. Even if the Trustee takes the remainder for your Ch 13 plan, you should get to keep at least that much.

Your Exemption will depend on what State you live in.