Help with 13 question about car! Lawyer not responding!

[seirich0425]

I filed a Cht. 13 last year, well this week my car engine blew and it will cost to much to fix. I called my lawyer and told him to submit paper work to surrendar the car and with his advice went to get financials setup up to get a new car at a dealer. The dealer started the paper work and sent it to the trustee to get permission. My lawyer is not answering any of my questions so maybe someone out there will. Now if I get this new car which is under $10,900 and payments each month are around $280.... right now my payments each week to the trustee are $63.00 for ch.13. What is going to happen when I surrender the broken car to the bank... That is the only secured debt I am paying through my plan. I can't convetr to a ch. 7 because I filed 7 six years ago.. long story short had a great job, got laid off and went tumbling from there.. hence the 13. So:
What will happen to my payments when I surrender the other car?
Will the new car be added to weekly payments or am I paying outside the weekly payments?
Do I call the bank of the broken car and tell them to come pick it up?
Can I refinance this new car after a year?
Will I receive a new plan in the mail? Does the trustee determine the new payment plan once the bank takes the old car?

Any help would be greatly appreciated since my lawyer isn't doing his job and answering my questions!

[seirich0425]

I should add I'm from Wisconsin if that makes a difference on anything

[justbroke]

What will happen to my payments when I surrender the other car?

This is why you need your attorney. Your attorney will need to file a Motion to Modify Confirmed Plan. In that motion s/he will likely deal with the broken car and deal with a replacement car. The attorney may also deal with changes in payments and whether the car is paid outside the plan (otherwise you'll incur that (up to) 10% premium for the Trustee).

Will the new car be added to weekly payments or am I paying outside the weekly payments?

I don't know. The Trustee will likely balk if you're not paying "something" through the Plan! Otherwise, the Trustee has to monitor your case and do audits, while they are making zilch. This is why your attorney will need to decide if you're paying inside the plan. If you pay inside the plan, through the Trustee, please know that an additional premium, for the Trustee's commission, will be added! So a $280/month payment becomes $308/month to the Trustee.

Do I call the bank of the broken car and tell them to come pick it up?

Please work with your attorney. This must be coordinated properly the Motion to Modify Confirmed Plan. Once this is worked out between your attorney and Trustee, and perhaps even before the Motion to Modify is granted, your attorney should call the bank and let them know. You can then make arrangements for the bank to come and get the vehicle.

Can I refinance this new car after a year?

You would need another Motion to Incur Debt (even though it's a refinance) and you will likely need another Motion to Modify Confirmed Plan to reflect the new payment in the plan. Please realize that all these Motions incur attorney fees as well! You will likely need to pay these fees inside the plan.

Will I receive a new plan in the mail? Does the trustee determine the new payment plan once the bank takes the old car?

Your Motion to Modify Confirmed Plan will be the modification. You would receive either a grant or denial of that motion. Your attorney and/or the court would give you a copy. The Trustee does not "determine" the new payment. The payment is based on, likely, solely your Schedule I/J calculation combined with this new debt.

Do you have attorney fees in the plan? Can you actually afford this? I ask because feasbility is one of the criteria to get the plan modified!

[seirich0425]

I have an attorney but it's like pulling teeth getting answers, that's why I have these questions because he is not answering them for me, all he keeps saying is have the new car dealer fax over the paper work. That's all he is saying to me

[LadyInTheRed]

I have an attorney but it's like pulling teeth getting answers, that's why I have these questions because he is not answering them for me, all he keeps saying is have the new car dealer fax over the paper work. That's all he is saying to me

He probably doesn't want to give any answers on how it will affect your plan until he has the paperwork in front of him so that he knows he is working with the correct figures.

[justbroke]

I with LadyInTheRed on this. Your attorney needs actual numbers, not speculative numbers, in order to even begin to draft or consider a Motion to Modify Confirmed Plan. The things I mentioned above represent some of the tasks your attorney may need to do. While Modifying a confirmed plan is something that attorneys perform, most plans are never modified over their lifetime (probably less than 30% are modified). Modification re-opens up your plan and all creditors get to poke at it again -- although it is typical that none may care or balk. This means your income is once again reviewed along with your expenses. You must, basically, propose a new feasible Plan of Reorganization and show that you can afford the new vehicle while not being a detriment to your creditors and what they would have received under the confirmed plan.

While it's a delicate balance, Trustees and attorneys deal with this enough to make it almost routine. Please allow your attorney to work for you and worry about the details.

[seirich0425]

Finally got a hold of him, he sent the paper work to the trustee.. since i am surrendering the car that was in bk13, payments went down and length got cut in half, but will be making a new car payment outside of plan. Took him over a week, and me telling him I was going to personally show up with the dealership paperwork myself , that lit a little fire under him....