New Car, what to do with the other one

[freshstart06]

We just got a new car over the weekend because my beloved Van is dying. I would have kept it but it will not pass the emissions testing, it apparently needs some engine work, also something weird is wrong with the brakes, everytime we turn on the A/c the car overheats (yes, we need A/C it is 113 degrees everyday, with 6 people in a van it can get hotter then hot) and it has 147K miles and I am still paying $380 for another year.

So we got one of those BKloans and got a new car. No down payment, interest rate a little high but my payments are only $50 more but we have a good car in this decade.

the dealership did not want my car, so what do I do with the other car tell them to come and get it and amend my schedules to show the new car payment??? I don't want the trustee to think we have that extra money available. Do I wait until after I am discharged and let them get the car or lift the stay?>>=

[Minnymouth]

You can surrender the van in your bankruptcy unless you signed reaffirm papers....... if you did, then you will have to pay a balance difference if its repo's and sold if you stop paying for it.

Legally the van still belongs to the dealer who owns the loan on it......

You didn't say whether you had your 341 meeting yet or not???
Does the trustee know you purchased another auto?
And yes I would amend my schedules to reflect the new auto....

Keep us posted.

[freshstart06]

I already had the meeting. I purchased the car after the meeting, so he does not know yet.

[Minnymouth]

You better be talking to the Trustee..........you ARE NOT supposed to purchase ANYTHING without permission of the Trustee............ hope you haven't 'screwed' up your case and get it dismissed.................!!!!!

Better get on the phone and contact your attorney and if you filed pro se you better be calling the Trustee.....

Too late to amend your schedules probably since your 341 has passed....

Just a word of caution...... make those calls.......

NOTE: During the bankruptcy process you are NOT supposed to buy or sell anything unless approved by the Trustee..... HE IS IN CHARGE OF YOUR FINANCES till after the discharge...........

[freshstart06]

it is like a redemption loan, I just replace one car loan for another and as long as you don't put a down payment on a car it is okay, I asked a lawyer before I did the transaction

[freshstart06]

I have to use a wheelchair at times and I needed a big car/van to do it. My van is barely running right now. NOthing changed. my payments went up by $50 dollars but I am still in the allowed expense. It may not matter either way until the bank funds the loan, if it does not we have to give back the new van however, I still will need to find another van.

[JRScott]

I think letting the trustee know or your lawyer is a good idea. You can do what is called a 722 Redemption loan, but as Minny points out I think you are suppose to have the trustees permission to take on any new debts.

I understand your need though, and perhaps after explaining it to the trustee or your lawyer you can get things smoothed over. If the bank refuses maybe you can get the old one repaired to last long enough until after the bk.

Good luck to you

[freshstart06]

That is what it is 722 loan, sorry I called it a BK loan. Come on you guys what other loan could we get while in bK LOL my mid score is like 437 and my husband is a little worse. those loans are allowed. But of course we still have to make sure we are approved. I am not about to start something and I am not even approved. I just wondered what do you do with the other car. That van is dead, with 147K miles and a 1997, the cost to maintain it is way out of our budget. We can't afford extra expenses at this time. We are taking this year to rebuild not continue going under.

[Minnymouth]

are you including the balance due on the loan on the old van in your bankruptcy...... if so the van is now the property of the lender..... tell them to come get it as soon as your discharged. Legally you do not have the right to sell it for parts or anything else.

After you explained what type of loan you got I don't for see a problem with the Trustee, just make sure he is aware of it.....

Hopefully this will all be over soon and you can get on with "living"...

[freshstart06]

Yes, I included the van in bankruptcy and statement of intent, however, I did not reaffirm that van, they did not even ask me to. I wouldn't not sell the van but I wonder if someone can take over the payments and switch the loan over the them.

[familyof7]

If you do keep the new van just let the old one go back no harm to you or your credit it was included in bk.

[freshstart06]

I can't believe the details of the 722 loan. there was not down payment and my first payment isn't until October. This will enable me to pay that dental bill downpayment. I was wondering how I was going to be able to pay that bill. I am going to call to see if we are fully approved yet.