Car title and Chapter 13?

[Scott50]

I've been a lurker for quite some time (since the Fall 2007) and have found the forum to be quite informative and got me thru some rough times. I originally was told by my lawyer that I would qualify for Chapter 7 and after I signed the paperwork to fill my case, I was told that I didn't qualify for a chapter 7 and would need to go the chapter 13 route. I also had Citifinacial file a lawsuit against me after missing only three payments- luckily I was able to file chapter 13 a week before the scheduled court appearance..

My question- do I need the trustee permission to sell or trade-in my car? The car was included in the chapter 13 plan- at the time I filed I had only one payment left. I received a phone call from the trustee's office earlier in the week- telling me that the Chrysler mailed the car title to them since its paid off. The trustee's office said that they would be mailing the title to me this week. I know that I need the trustee's permission to take out a loan to purchase a vehicle- but do I need the permission of the trustee to sell or trade-in the car that I have the title to? I plan on having to replace the car in two years..

[rrockinggramma]

Many here will say to let your trustee know. but if it is all cash deal and it doesn't affect your chapter 13 trustee paymens, then I would go ahead. I had a car paid off included in my chapter 13. Company sent me the release of lein and I sold it for cash as I had another vehicle. Of course any loan or signing up for new debt requires trustee permission.

[krielly]

I think you need to speak to your lawyer before selling an asset without notice to the trustee. Remember, when you are in a 13, all assets are part of your estate. I'm not sure if you were able to exempt the entire amount of your equity of not, but particularly if you were not able to, don't do anything without asking your attorney first.

K

PS: if your'e going to buy another vehicle, you'll need permission anyhow, so why not just include the statement in your request that you will be trading this car in towards the purchase of another..................

[Help!]

Scott, I have a dismissal in the works too. My Citifinancial account has already been sold to a collection agency. Those three payments weren't the ones you missed during your 7, were they? Did they sue you right after your dismissal? For the full balance or for the amount to bring it current? I was hoping to get caught up and not file 13, but obviously if we are sued we will have to.

Curious also how much you were able to exempt in your 13. I know it depends on the state, but I'm trying to learn as much as I can. How do you feel about your 13?

[Help!]

Scott, I have a dismissal in the works too. My Citifinancial account has already been sold to a collection agency. Those three payments weren't the ones you missed during your 7, were they? Did they sue you right after your dismissal? For the full balance or for the amount to bring it current? I was hoping to get caught up and not file 13, but obviously if we are sued we will have to.

Curious also how much you were able to exempt in your 13. I know it depends on the state, but I'm trying to learn as much as I can. How do you feel about your 13?

[Help!]

Sorry for the double post... Browser issues!

[Scott50]

actually I signed the paperwork for filing a Chapter 7 but it was never filed. My lawyer never did the means test with my income and expenses and another lawyer in the firm caught the "slight" oversight. In regards to Citifinacial- at the recommendation of my lawyer- I stopped paying in October and the lawsuit was filed against me in January. It was never sent to collections- basically I recieved a letter from a lawyer telling me that they might file suit against me if I did not contact them to discuss payment and the following month a received a notice indicating that a lawsuit was filed against me. I was sued for the full amount of the loan including the interest for the remaining 3 1/1 years.. After I filed Chapter 13- Citifinancial sold the debt to another company who then filed a claim with trustee for the full amount of the loan...

I don't mind being in a Chapter 13- I've forced myself to stick to a budget, putting money aside every month in my savings for the unexpected things that come up that I can no longer use a C/C for.. I'm glad that in another 4 3/4 years that my debt will be gone... I am envious of those in a Chapter 7 though- basically the day after your discharge you can start over fresh..