Trustee Approval For Auto Loan

[Carmella]

ConfusedPeet I am glad you did get a car. I think the key is finding someone who knows how to deal with BK/active Chapter 13. The car I have is not one I would have wanted to buy. I am not ungrateful because I was happy to have a reliable car when I needed one. But it's just not one I would have chose.

[ConfusedPeet]

It has been a battle but I have finally purchased a car! It is being delivered Tuesday. Many dealerships would not work with me at all being in active chapter 13. They said I could modify my plan and include the new car. I don't plan to do that because I want an open tradeline to rebuild credit. The dealership I was originally approved at did not have anything interesting in stock. Many dealers took over a week to respond after applying. I applied at yestobk.com and really liked how they were familiar with bankruptcy. The process with them was really fast as well. The loan I have also has a monthly rate reduction program for on time payments. The interest rate through them isn't great but I didn't expect it to be. Thanks to all for your help!

[Carmella]

Update! I called the Trustee's office and they gave my attorney 48 hours to respond. My attorney emailed me pretty quick and submitted the approval on 3/18. According to pacer it looks like it has already been approved. It says "debtor is allowed $xxxxx to purchase" but it isn't signed. Will a copy be mailed to me once signed? Also, the car that I planned to get has long been sold. Do I have to get the exact same vehicle at the exact same price? Can I go to another dealership? Added bonus is the attorney said we can keep our tax return this year! Thank you guys for all your help!

This is how it went for me. You get a car approved, but they sell it in the meanwhile which makes sense they are a business.

But you can take the papers you have and get another car with the same price. I don't remember if our papers were mailed or emailed to us. I usually had a copy of everything that went thru the court mailed to me by the attorney or maybe it was the trustee I can't remember at this point.

And YES you can go to another dealership. That's what I did and I went to one that was familiar and friendly with people in active Chapter 13. They didn't advise "we sell cars to anyone, bad credit no problem..." I asked at the second dealership because the first dealership I went to and got the quote/was approved for financing didn't know much about BK. There was a man who had experience with financing during BK and he was very knowledgeable. And they were happy that I had all the approval.

Congrats on the tax return!

[justbroke]

They do electronic signatures. The fact that it is on the docket with the attorney's name is the signature.

The approval is not for a specific vehicle but for a specific amount. Your request probably includes the maximum monthly payment, along with the interest rate. That is what is approved. Don't exceed any of the numbers.

[ConfusedPeet]

Update! I called the Trustee's office and they gave my attorney 48 hours to respond. My attorney emailed me pretty quick and submitted the approval on 3/18. According to pacer it looks like it has already been approved. It says "debtor is allowed $xxxxx to purchase" but it isn't signed. Will a copy be mailed to me once signed? Also, the car that I planned to get has long been sold. Do I have to get the exact same vehicle at the exact same price? Can I go to another dealership? Added bonus is the attorney said we can keep our tax return this year! Thank you guys for all your help!

[ConfusedPeet]

I will contact the trustee tomorrow. According to Pacer the attorney has been docked pay because of not filing other documents and the trustee has ordered a status hearing on March 19 which she could be fined again. Also, according to Pacer the debtors need to attend the status hearing but this is the first I have heard of it. Meanwhile, still no response from the attorneys office. I even tried asking for her paralegal by name and did not get a response. I can't imagine going a full 5 years this way.

[justbroke]

You're in a Chapter 13 so getting another attorney can be expensive since you are post-confirmation. The motion isn't filed until the Trustee has concurred. Typically the debtor, through their attorney, will fill out a form asking the Trustee if they'll approve the new debt. Then the Trustee would agree or disagree. If agreed then they'll file a joint motion to incur debt (or a "stipulated" motion).

I do not know the process in your district. As I have written before, it could be tied up in the Trustee's office. It wouldn't be a motion but generally a request on the Trustee's required form. Maybe you want to try to call the Trustee. My main concern is that you have had 0 response from the attorney in a month.

[ConfusedPeet]

Wow. I was able to login to Pacer and there has been no activity since February 5. The attorney didn't even file the motion to incur debt. Should I contact the trustee or hire another attorney? So frustrating.

[justbroke]

If you're in Western Kentucky... https://ecf.kywb.uscourts.gov/

If you're in Eastern Kentucky... https://ecf.kyeb.uscourts.gov/

That's the bankruptcy courts for the Western and Eastern districts, respectively.

Then click the database link... (e.g., "Eastern District of Kentucky - Document Filing System")

Then click "Need an account?" which will bring you to the US Court's PACER (readonly) system registration page (https://pacer.psc.uscourts.gov/pscof/registration.jsf) That is where you sign up.

Once you have an account then you can go back to the Western or Eastern (based on where your case is filed) and login to the live database. MAKE SURE YOU ARE LOGGING INTO THE BANKRUPTCY COURT AND NOT THE DISTRICT COURT.


In other news... PACER is undergoing maintenance tonight...

Our systems will undergo maintenance on Sunday, March 10, 2024 , from 5:00 a.m. to 4:00 p.m. ET. Access to certain portions of this site may be temporarily unavailable.

[ConfusedPeet]

How do you look up a case on Pacer? I tried to register for an account but it says there is an error. I'm so exited that I can possibly see if the motion was even filed. Thank you for your help.

[Carmella]

Look up your case on PACER. If a motion was filed it will be listed online. I don't remember how long it took for us when we had one car which was totaled in an accident. But I had to get approved and turn the info in to my attorney who then went to the trustee and they had to get it approved in court. Then I had to go back to the dealership and then get a different car, actually I went to a different dealership because the first one couldn't come through (pandemic).

Long story short it is a process, but maybe you can see if a motion was filed, etc on PACER and then you will have an idea of how close you are to being approved to incur new debt.

I was with a larger firm and the paralegal always talked me. I got the impression the attorneys were super busy.

[ConfusedPeet]

It is a small 2 lawyer firm. Communication was great until this. Problem is that not having a second car is affecting our ability to do our second income. Luckily we are our own boss or we would have been fired by now. Tuesday it will be a month since sending the bill of sale and no communication. If I do not get a response by then I will contact the trustee.

[justbroke]

No. Communication with the attorney is important. Call at least twice a day. Once around 10AM and once around 3PM to see if you catch them. Is this a single attorney office or a larger office? Since it has been 3 weeks of no contact the Trustee's office may be more inclined to talk to you.

[ConfusedPeet]

Thanks Justbroke. My issue is that I have emailed (once a week) and followed up with a phone call but have not heard any response from the attorney in 3 weeks. I even asked when calling if they were out of the office or sick. I'm emailing about other issues too. Taxes, deficiency balance on the surrendered car, creditors still contacting, and others. The last communication I had was when I sent the bill of sale from the dealership. I want to contact the trustee to even see if the motion to incur debt was even filed. Am I expecting too much and need to be more patient? Thanks!

[justbroke]

It's probably not your attorney holding this up. It's probably the Trustee. You should not contact the Chapter 13 Trustee when you are represented. Please reach out to your attorney by email and phone to get an update. These sales typically require a motion to the court to incur debt and that could take 30 days alone.