Well, crud.. Now I've gone and done it. Totaled car..

[NowImDownInIt]

So Friday we had torrential downpours. I drove through some deep waters that didn't look nearly as deep as they were and I flooded out my engine. I was driving a 2006 Chevy Malibu Maxx that was being paid through my plan. IDK where to go from here. My husband and I work on opposite sides of the city. Houston is not known for it's public transportation and I HAVE to have a car. I've called my attorney and I am waiting for a callback. I just want to know if anyone has any personal experience with all this. Where do I go from here. I drive and hour to work and an hour back each day. It's only 25 miles, but it's Houston traffic. I am incredibly stressed out. We are beyond broke. I had a good bit saved then my daughter got chicken pox... and 10 days later my husband got chicken pox.. and now 10 days later, this happens.

[justbroke]

Hopefully your insurance provides gap insurance (or you have such) and you can then get a new (replacement) vehicle. The insurance can be used to payoff the existing loan, and you'd get a new loan for a replacement vehicle. Some attorneys get creative and do a "motion to substitute collateral" allowing you to use the insurance proceeds to buy a new vehicle (cash) and assign the lien to the creditor that's already in plan. (This does not work in every District and requires an attorney that knows what they are doing.)

I know there are others on BKforum who have had this happen. Hopefully they'll chime in shortly. I'm sorry to hear about your car loss. This is why a Chapter 13 can be very trying on a person.

[NowImDownInIt]

I'm not sure if I have gap insurance or not. I know that there was not a little box to check off to get it, because I definitely would have. I am feeling very insecure right now. It's a comprehensive claim and as such, I can't even get a rental car. I am insured through Nationwide and have been since early 2008.

[Lissy]

I had this happen in March, but my situation was a bit different so take from it whatever you can. My car was totaled 3 weeks after I filed, so I was not yet confirmed. I hadn't even had my 341 yet, so I don't know if that makes a difference in what my experience was. I was involved in an accident that was not my fault, so I was able to get a rental car paid for by the insurance company. However, my credit was obviously in the crapper, so getting a new auto loan was my biggest hurdle. I was approved through RoadLoans, but the interest rate sucks at 18%. I didn't have many options though, so it is what it is.

My car was worth more than I owed on it, so the insurance company sent a check directly to the lienholder for the amount I owed and sent me the rest. There was an issue with that at first, the insurance company somehow found out about my CH 13 (still not sure how) and refused to send me the money until my TT approved it. He did and I was able to use that money as a down payment on my new car. I did not have to file any kind of motion to incur new debt, but I did have to get permission from the TT. That only took 2 days, no issues at all. My TT maintains forms for common things like this on his website and all you have to do is fill it out and fax it over. I believe that varies by district though.

Bottom line, you need a new car. I would start looking around for financing options and find out what you need to do to get permission to incur new debt. If the insurance payout won't cover what you owe on the car, you may be able to roll the balance over into your plan since it was debt that was already included in your plan. Ask your atty about your options with that. Good luck, I know it's a stressful situation to be in!

[NowImDownInIt]

Update..

So I did something I've never done or advocated and withdrew $1800 from my IRA to fund my down payment. Problem is that I am extremely worried about securing financing. I applied online for Roadloans and was declined! Was that my only option? I looked into Roadloans and noticed that them and Drive Financial are both under the Santander umbrella. I had my original car through Drive and it's now included in my BK. I feel like I'm up a creek without a paddle. I am hoping that when I go into the dealership tomorrow they have better news. I am looking at a 2009 Impala ($13k).. My other car was a 2006 Malibu Maxx. The Impala is much larger which I really need because two full sized car seats take up my entire car seat. I am trying to look at all of this as a blessing but it's becoming harder and harder to do so. What if I can't find financing?

[justbroke]

Side note: Santander bought HSBC Auto Finance as well. I think they'll own all non-manufacturer (GMAC, FMC, HMC, etc) financing before it's all over. That means, not too many places to shop. You can always try a local bank?

[NowImDownInIt]

Do you think that my credit union would finance me? It's probably a long shot.

[justbroke]

Do you think that my credit union would finance me? It's probably a long shot.

Credit Unions are usually the best and easiest place to get loans. It's worth asking/applying!

[NowImDownInIt]

2nd Update

So..

Still trying to secure financing. I am in talks with the credit union and I have a good feeling about it (keep your fingers crossed).

Talked to trustees office. I can have a payment up to $500 a month. I am trying to keep it under $350 however. I can't apply to incur debt until after I have a modification hearing set and I can't get that set until I have the information from the insurance adjuster on my current vehicle.

The estimate we've been given is $4000 to repair my car. It's only worth $5755 KBB private party. That's pretty much guaranteed totaled, right? I wish he would answer the phone or call me back. I hate this waiting game. I don't really have time for it.