Question on buying car in Chapter 13

[edharley]

Got a question for the more knowledgeable folks on here.

I am 30 months (approx.) into a 46 month Chapter 13. Included in this are two card that are being paid 100% (this was to protect my wife, the 13 is in my name only).

We may need to replace one of the cars before the end of my case, but hopefully not. If we wind up needing a new car (new only in that it would be new to us), can we trade in the car we're replacing since it's going to be paid for through the plan anyway? Either way, how do we go about the process of buying a car during BK?

Thanks in advance.

[Flamingo]

First step is to contact your attorney and discuss with him/her what you want to do. Any additional credit taken on during your Plan (i.e., car purchase, loans, etc.) need to be approved by your Trustee. We purchased a new vehicle prior to discharge but we had already paid off both our vehicles that were crammed into our Chapter 13. We had the title to one and we used it for a trade in. In your situation, since the titles to your vehicles are still with the bank/lender, I am not certain how that would be handled with the vehicles being in your Chapter 13. Your attorney can correctly advise you

[MajorMike]

Here in New York, we keep our title throughout the loan but I'm not sure if that makes a difference.