question about totalled car

[twinmom]

Hi all, my husband had a car accident over the weekend (it was his fault, he pulled out of the shopping center where he works turning left, he didn't see the other car coming and they hit head on). We found out his car is totaled. The insurance company is going to pay off the loan. We are obviously going to need a new car and we are not getting any extra money from the insurance company. My questions are:

1. does anyone know if our amount due to the court will be reduced due to the loan being paid off?

2. Has anyone had experience with having to replace a car during bankruptcy, and if so, how difficult was it to get the court to agree to this?

TIA!

[LadyInTheRed]

I hope nobody was hurt!

If you want to finance the replacement vehicle, you will have to get authorization from the court for the loan and also modify your plan to get your plan payment reduced to cover car payments you will make directly to the lender. If the new car payment is about the same as the one included in the plan, it shouldn't be an issue. But, if the car was going to be paid off early in the plan and you have other minimum amounts that must be paid in the plan, there could be a problem. Call your attorney right away to discuss how to move forward.

[Mayo]

I totaled my car with 2 payments left on my 60 month 13 plan. It was difficult dealing with finance company and insurance company. I ended up having to go back to court and made a motion to settle with insurance company. The insurance company sent the trustee the claim check. I ended up getting the difference two months later.i just bought a cheap car with the amount I was given back.