Chapter 13 Filing Vehicles Involved

I'm new to the site and I have a few questions. I am about ready to file and will fall under the old law. I have numerous small creditors (bills) but have a $155,000 home that I want to keep, I'm behind about $3,000. I also have two vehicles 1994 Silverado and 1997 Windstar. They both have alot of miles on them and wear and tear etc. It was suggested today by my lawyer that I file a Chapter 13 instead of a Chapter 7 so to keep my house. She asked if I wanted to keep the vehicles and also made out a payment schedule to submit to the trustee (4 year plan). However my wife thinks the vehicles won't last that long and wants to surrender the Windstar. How does this work if you want purchase a new vehicle immediately? She needs a vehicle for work, family etc. The lawyer says that you have to ask the trustee to incur more debt, is this after the creditor meeting, after filing, discharge? Lawyer says it takes about 20 days for an answer. Anyway, how does this work? We are gonna sign our papers in a few days so please help. Thanks. T.

First you must be current on your house payments......in order to keep your home....
You didn't say how much equity you have in the home?
Second, if you are behind on your house payments - how can you afford to buy a new car right now (even with the Trustees approval)....
Are your current cars paid for and if so what is the value of them....??
Yes you will have to have permission from the Trustee to purchase another vehicle, though it is extremely hard to purchase a new vehicle when you are also surrendering one in bankruptcy..... Can you finance it????

Things to consider,

Minny

I understand that your past due mortgage payments would go into a chapter 13 plan and you would have to keep all post petition payments on time.


First you must be current on your house payments......in order to keep your home....


Minny

We do still owe on our vehicles $5,000 on the silverado 94 and $7,000 on the windstar 97. Both are majorly upside down. My attorney made out a worksheet including the vehicles, mortgage, mortgage in arrears (4300) and trustee fees for 48 months. My lawyer said if we file b4 oct 16 we will cram down the car payments due to worth not loan amount. I told my wife and she's all into keeping the house but wants to get rid of the 97 windstar with 113,000 miles. Understand, I agree, however, I called the lawyer today and he said that we can show we are keeping them until we go to the meeting and then surrender them if we want. We would have to get approval from the trustee for another purchase. I'm keeping the truck, don't want the hassle. If we want to keep vehicles and turn them in later he said we can in six months to a year. Is this all true? My wife is giving me alot of pressure on this one.

Also, the plot thickens, this is not funny I know.... anyway. My creditor for my truck called today. I'm about 3 months behind, they won't accept a 200.00 payment. I told them I am going Chap 13 and they want all the info, file date, case #, lawyer info etc. I can give them everything but the file date as we haven't filed yet but will middle of next week. What should I do about the truck? I keep it in the garage at night but feel like they will come to work and take it. I keep it in a fenced in area, gate in front etc. Can they come on the property and take it? Please help. I am getting pressure from all angles. Thanks.

T.

Regarding them picking it up at work, that will likely depend on local laws in your area. Any likelihood of leaving it in the garage and getting a ride to work until you file?

Ch. 13 does allow you to get back repo'ed property, but you might have to pay the repo fees. I understand the past due amounts on the vehicles go into your 13 but I'm thinking the repo fees wouldn't. (Probably because that service is outsourced to another company, so it isn't secured by the vehicle. If they didn't get paid upfront, you could include the debt in your BK.)

Perhaps part of the reason your attorney advises you not to try to get a newer vehicle right now is that you would have a very hard time trading in when you're behind & upside down. Anything you ended up with would have had a sky high payment...

Thanks for the help Stacie. I called to get the case # and file date and of course there is no file date because it isn't filed yet. My attorney said that I would have to just hide it. We need to file immediately. Prey for me until we file that they don't take my transport. I drive about 40 minutes to work. Take Care. Anymore info please write me. Good luck. Thanks

T.