Car Totaled and about to file Chapter 13

[Nena 11]

Just when my husband and I decided to file for bankruptcy, specifically Chapter 13, our car got totaled. Our equity in the car is $4K. What will happen to that money? Will it go to the Trustee or can we keep it in order to "try" to buy a new car?
Does anybody have an answer? We need help.

[HHM]

Are you getting an insurance pay out. But if your filing a chapter 13, it won't matter, so long as your payments under the plan exceed what your creditors would get under a chapter 7. Generally, the trustee does not take equity in a chapter 13.

[Nena 11]

Car Totaled and about to file Chapter 13

Yes, we might be getting a payout on the equity, which is about $4K. I wouldn't want the Trustee to keep that money as we might need to buy another car. You think that money would be ours to keep?

BTW, it looks like our total monthly payments under the Chapter would be close to $600 and we have about $40K on unsecured debt.

Thanks.