I have 2 vehicles that are a part of my chapter 13 plan.
Vehicle #1.) Equity 3900 (exempted), financed by Carmax (creditor). My friend has been paying the notes on this car and will be buying the car outright from me in the next couple of months. This is thoroughly documented on my petition as well as the money she gives me each month towards the note is on schedule I and documented.
Vehicle #2.) Equity 0.00 Car is owned by separated spouse and I'm paying the note directly to the lender.
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My question is, what could the trustee do with the 1st vehicle? I assume at face value he could say having 2 vehicles is too much but my lawyers say that I demonstrate the ancillary income to pay for the first vehicle and it's a wash since my friend pays the payment. Could the trustee still force the car into the plan? If he did this then would my friend be able to buy the car from me or would she have to wait till my plan is done? My lawyers assure me that I will be able to keep the car outside of the plan and sell it to her when she's ready but I may be subject to a step-up payment.
My main concern is being able to get her the title when she's ready to buy. Otherwise, I may face a lawsuit from my friend for the money she's paid into the car even though I've notified her of my BK and the remote possibility of the car being in the plan and given her ample opportunity to buy the car before anything happens.
Just not sure how this situation could go and could use some feedback.
Vehicle #1.) Equity 3900 (exempted), financed by Carmax (creditor). My friend has been paying the notes on this car and will be buying the car outright from me in the next couple of months. This is thoroughly documented on my petition as well as the money she gives me each month towards the note is on schedule I and documented.
Vehicle #2.) Equity 0.00 Car is owned by separated spouse and I'm paying the note directly to the lender.
----
My question is, what could the trustee do with the 1st vehicle? I assume at face value he could say having 2 vehicles is too much but my lawyers say that I demonstrate the ancillary income to pay for the first vehicle and it's a wash since my friend pays the payment. Could the trustee still force the car into the plan? If he did this then would my friend be able to buy the car from me or would she have to wait till my plan is done? My lawyers assure me that I will be able to keep the car outside of the plan and sell it to her when she's ready but I may be subject to a step-up payment.
My main concern is being able to get her the title when she's ready to buy. Otherwise, I may face a lawsuit from my friend for the money she's paid into the car even though I've notified her of my BK and the remote possibility of the car being in the plan and given her ample opportunity to buy the car before anything happens.
Just not sure how this situation could go and could use some feedback.