Car problems

[edgybob]

In Oregon.
Been in Ch 13 for a year now. What a struggle, but we are doing it.
We have 3 cars we are financing: 96 Blazer; 99 Intrepid; and 2005 F150.
INteresting note about the F150 is that when we first filed 1.5 years ago we agreed to surrender the F150, but they never have picked it up. For 6 months we had it parked in our side yard, thinking they would pick it up some time. Thye never have. We drive it rarely and never keep any personal items in it in case they come in the mikddle of the night. But that is not at issue.
Our other 2 vehicles are financed by our credit union. In fact theya re cross-collateralized, such that if we default on one we default on the two of them. So we have kept up payments. The 96 will be paid off in 4 months, at which time our BK plan payments will be increased by the amount of the payments.
Problem is, the 99 Intrepid just gave up the ghost. It suddenly started knocking and we think it is an internal part that will cost $2500 to repair. It is not in our budget.
Please comment on this plan: pay off the remining balance on the Blazer, about $650; let the credit union take back the Intrepid; and ask the referee to allow us to purchase a newer used vehicle with payments around $350, which would be about the same as what the two car payments are now.
We really need 2 cars and can not depend on the F150 to be around much longer. My wife and I work different shift about 15 miles from our home.
Is this reasonable?

[lrprn]

Quite a dilemma. What does your lawyer advise?

Since most folks come into Ch 13 with older cars, it's not unusual for a car to conk out while we still under the trustee's financial control. Often in your situation the trustee will agree to a car purchase, but the biggest problem will be getting acceptable financing for it

[jenrw74]

Sorry to hear about the Intrepid. Heard a lot of bad things about timing chain/belt problems on those, my brother's included. They had theirs for only about a year and had to get rid of it because the estimate was like $4500.

Anyway, our van was hit and totalled a year into our ch. 13 and we were able to get pre-approved for financing thru Friendly Finance (thru a dealership). There aren't too many lenders who will help you while in an active 13. Talk to your attorney about your situation because different trustees want things done in a different order. Ours wanted us to get pre-approved before we filed a motion to incur debt.

[edgybob]

can I give back a car

can I give back a car that was part of my Ch 13 agreement?
My car was being finanaced and we determined we could afford the payments, however, now that it needs repairs beyond our means - way beyond our means, about $3000 - we can not afford to get it fixed and need another car.
So can we discharge the debt a year after we filed Ch 13?
I know it will be difficult to find financing, but I have a brother in law who owns a car lot who can help.
My only question now is can we give up the car (I hate to stick the credit union with this car) while in Ch 13?
Assuming the referee agrees.

[rrockinggramma]

Talk to your lawyer but be prepared to change credit unions. They are the worst when it comes to BK filers who give stuff back to them.

[edgybob]

yeah I know

the reason we kept the vehicles was because if we had let them go we would of had to close our business account. unfortunately we closed our business a few months later.
if i can let the one car go that would be sucky for the credit union but good for us

The real question is: can I get out of the conract even though I reaffirmed it at the beginning of the Ch 13?

[lrprn]

The real question is: can I get out of the conract even though I reaffirmed it at the beginning of the Ch 13?

If you reaffirmed the loan for the car you now are considering surrendering *AND* the lender accepted the reaffirmation, then you will be held responsible for paying whatever remains on the auto loan after the car is sold at auction.

Talk to your lawyer before doing anything with the car - you don't want to jump from the frying pan into the fire without knowing all the legal consequences of any actions you might take.