Car trading in CH13

[Cramdown]

I have read all the post on how to go about trading your car while in 13, but really haven't read any success stories.

Has anyone been successful in trading?

[Cramdown]

WOW!

I would say as of now...zero success!

So, does this mean you're stuck with your car until your out of 13?

[lrprn]

It is possible to finance a new car during Ch 13, but it is extremely difficult to find a lender who will loan to you during an active 13. Worse, even if you do find one, the rates are going to be atrocious - typically in the upper teens.

Now you know why most bk lawyers recommend that folks get a newer, more reliable car (or cars) in place before filing a 13.

[Cramdown]

I wasn't planning on getting a new car, used.......does that make a difference?

[lrprn]

I wasn't planning on getting a new car, used.......does that make a difference?

Getting a reasonable used car may make the loan smaller and *possibly* a bit easier to get. However, given the current severely deflated lending atmosphere, you're setting yourself up for a nearly impossible task.

The more of a downpayment you can make, the better your chances of finding a lender become. But as we all know, amassing much cash in a 13 is a tremendous challenge and often proves impossible.

[krielly]

I guess you could say we are a "success story".

We filed 13 in Oct, 2005. We traded my husband's truck last November, and my car at the end of June this year. (Both for used vehicles). Also, we were actually just able to get a plan modification to cover most of the vehicle payment for the car I just got in June (my car payment is $321 and our plan payment was reduced by $291)

Interest rates, while not great, were good I think, considering we are in an open 13. 12% on the truck, and 11.74% on my car.

It is NOT easy, but it IS possible.

K