So, I have one year to go until my Ch.13 is discharged. But my car needs a few thousand in repairs. I get a holiday bonus that would fix it. But with over 160,000 miles on the car, I'd rather use that cash to buy a low mileage used car. Which I know will be fine - as long as I pay cash and don't finance the car. BUT, trading in my old car is not OK, as that is an asset in the trustee's eyes. I'm sure my car can go a few more months....so what I was thinking I'd do is trade my car in after I get my bonus. At that point I'd have roughly 6 months left in my Ch.13 plan Is there some way the trustee would find out about this? Or should I not worry?
I could go through the process of getting trustee approval to trade in my car. But I hear that can be a long and difficult process. My lawyer would have to re-submit my paperwork all over again, which could take months, and could also change my payments and/or extend my Ch.13 plan. I want none of that! So with less than a year left - and knowing my car will definitely not make it that long without significant repairs - what should I do? I see 4 options:
1 - buy the new (used) car, trade in my old car, and hope he trustee has no way of knowing about the trade-in
2 - buy the new (used) car, and HOLD ON to my old car. Trustee won't care in this case. I'd still have to make payments on the old car and pay the insurance, but only until my Ch.13 is over
3 - fix the old car, which would feel like throwing money down the drain and a bad investment
4 - do nothing and hope for the best. Not ideal. I have a job and a family and need a reliable car
Obviously, I am leaning towards #1. And #2 is the worry-free (but more costly) option. What would you do in my situation? Anyone been through this that can give me good advice?
Thanks!
I could go through the process of getting trustee approval to trade in my car. But I hear that can be a long and difficult process. My lawyer would have to re-submit my paperwork all over again, which could take months, and could also change my payments and/or extend my Ch.13 plan. I want none of that! So with less than a year left - and knowing my car will definitely not make it that long without significant repairs - what should I do? I see 4 options:
1 - buy the new (used) car, trade in my old car, and hope he trustee has no way of knowing about the trade-in
2 - buy the new (used) car, and HOLD ON to my old car. Trustee won't care in this case. I'd still have to make payments on the old car and pay the insurance, but only until my Ch.13 is over
3 - fix the old car, which would feel like throwing money down the drain and a bad investment
4 - do nothing and hope for the best. Not ideal. I have a job and a family and need a reliable car
Obviously, I am leaning towards #1. And #2 is the worry-free (but more costly) option. What would you do in my situation? Anyone been through this that can give me good advice?
Thanks!
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