Wife & Daughter are fine. Car is not. Questions?

[bksmith12345]

Yesterday my wife and daughter got into an accident in her 2002 Honda Accord with 94000 miles on it.

They are fine. Thank God!

The Honda will probably be totalled. Both airbags deployed. The hood, front bumper, fenders and hood are shot as well.

We have one payment of $265 in our plan. Only owe $2120 in remaining payments outside plan.

What happens if they total it? What do we do about a car? What happens to the extra money over the payoff? Do we lose it to the trustee?

We are very confused and a little bit worried about what happens if it is totalled.

Anyone ever go through this?

Any input would be greatly appreciated. Thanks all.

[becky20]

Not sure but I would bet money that they would total it if airbags deploy. I am pretty sure you can petition to keep any payment above and beyond the payoff in order to put it towards another vehicle.

Glad they're okay!!

[justbroke]

Contact your BK attorney. You will need to get permission from the Court to get a new car. Your attorney will file a motion to incur debt. If there is extra money, you should be able to use that towards a replacement car.

[Flamingo]

Since you are in an active Chapter 13, that car is part of your Plan and you need to advise your attorney immediately of the situation. You will have to supply the attorney with all the information after the insurance company gets back to you as to any funds involved in the payoff to the lienholder because your insurance company will pay the lienholder directly. Your attorney will advise you what he/she will need and what you need to do.

[bksmith12345]

Thanks for the info guys.

The adjuster is coming out monday or tuesday. I work in the car business and my body shop says they will probably total it.

I was looking forward to no car payments. But, so is life and they walked away without a scratch.

If there is enough left over I would really like to buy a cheap car. Wife works from home. Just needs wheels and I have access to many nice cheap cars. Primarily Hondas.

If we do need to finance what bank would touch us with a 10 foot pole? Getting financing for decent credit has not been easy lately.

Any thoughts?

[rrockinggramma]

stick to finding a car paid for with cash. Especially since you have access and can help keep it running.

[bksmith12345]

stick to finding a car paid for with cash. Especially since you have access and can help keep it running.

That is my thought exactly. However, if we do pay cash will our plan payment increase by the $265 payment we were making outside the plan?

If so why not get a better car and make the payment for the car instead of giving it to the trustee?

[rrockinggramma]

that is true if you can find a car with that payment.

[bksmith12345]

that is true if you can find a car with that payment.

I can not looking for much. Just don't know who would finance us. I guess my attorney should know.

Tommorrow the adjuster comes to see the car. We shall see what happens.