2nd year of 13 and need a new car

[Kenzlage]

We are just starting our second year of 13. We have a car that is included in plan and payments are made from trustee. My wife no longer works and stays home with our kids. Our older car needs about 4k worth of repairs and has over 200,000 miles on it. Would trustee let us take out a loan for a reasonable car purchase? Our old car is not worth putting money into it and my wife needs a car.

[lrprn]

You will need permission from your trustee to pursue getting another car with a loan, so the first thing you do is contact your bk lawyer to make the request. Most trustees have a maximum car payment they will allow, so you need to know what that amount is before you go car shopping.

Frankly it is difficult to get any kind of loan during an active Ch 13. Grit your teeth because the terms are likely to be sky-high with interest in the upper teens. But you can get a new (to you) car during Ch 13. Other members have done it.

Also be aware that if your plan has to be modified to accommodate a new loan amount, depending on the agreement you signed when you retained your lawyer, amending your plan may cost you more beyond your lawyer's original fee. Ask your lawyer how much amending your plan could cost you when you contact him/her to get trustee permission to go car shopping.

Good luck!

[mountanddo]

My wife no longer works and stays home with our kids.

Was your Wife's income part of your plan? I'm not sure if the loss of her income plus the loss of any daycares expenses might alter your plan but it might be worth looking into. You may have already done this.