Turning in car

[CBC123]

Hello All,
I have another question about turning in a car while in BK13. Can my wife and I turn in our car and what are the consequences? The reason is well I am thinking that if need be (and God forbid) our plan payments will increase along with our ARM in 12/07. Our plan payment will increase to 750.00 from 250.00 and who knows what our mortgage payment will be in 12/07. So is this possible and if so will we owe a deficiency balance? Would the car show as a repo now instead of BK13? And would we be allowed to buy another car (say a used car) that would not have any financing on it?

[dac67]

We could not get any financing thru anybody and we checked out ALOT of dealers. All those so called "we can finance anyone" is bogus. You have to be discharged, we couldn't even do it by getting a cosigner. So our father in law loaned us 2000.00 to buy a used car. We can only hope it last till the end of our 13 bk. We have a little less then 2 years.

[leftyf]

Word Problem

A couple went bankrupt and borrowed $2K to by a used car from their father-in-law? Answer this question: Who's father did they borrow the money from?
Yes, I am totally losing it...

Leftyf

[Granny]

A couple went bankrupt and borrowed $2K to by a used car from their father-in-law? Answer this question: Who's father did they borrow the money from?
Yes, I am totally losing it...

Leftyf

Leftyf

You really have lost it, take a breather.

Their father in law loaned them $2k to buy a used car from someone else.

[nervousnellie]

We could not get financing for a car either when our lease was up.But the very day we were discharged we started getting mail from dealers who want to finance us now We will buy one when we find the right deal.From what I've been told the credit unions are the best place to go for financing. .In the meantime we drive a car we bought for $1600 about 2 1/2 yrs ago.Having a son-in-law that's also a mechanic has been a blessing too.

[BlessedOne]

I don't think the question has been answered properly. The question was about turning in a vehicle during a Chp 13 and buying a car without getting financed.

In my experience, I inquired about turning in our vehicle, since the engine has died and we are still paying on it in our plan. We were told it may appear as a repo, Ford financed the vehicle, but our attorney wasn't really sure how it would report to the credit bureau. We still have not decided what to do, but we don't want to risk a repo showing up.

In regards to buying a vehicle without financing, we actually did buy a car for about $1000. We contacted our attorney to see if we needed the Trustee's permission, and we were told we did not. I guess we pay so much into our plan, we were fine to make the purchase. We had also been in our plan for about 30 months.

We are basically in the same situation you are facing. We also have a miserable ARM that has increased on us every 6 months since June 2004. Our payments actually went up $1000 in the past 3 years. It has been very, very, hard for us but we are somehow managing. Good luck to you.

HTH

[cso5@]

Kind of in the same boat

Hi,

I had asked my attorney about possibly buying another car. My old one is on the verge of dying for real -- I thought it was a goner this past time, but it turned out it was an oil sending unit (?? whatever that does) and it was fixed for less than $200.

So I asked, what happens to the existing car? It is being paid through the bankruptcy, in two parts, the secured part (what it was actually worth when I filed) and the unsecured part (the amount I was upside down). I think they call this a cram down? And he said I could trade it -- and the unsecured part would continue to be paid through the bankruptcy, or I could surrender it. Further, I could surrender the house if I wanted to -- I am not "stuck with" these assets if something really bad that is insurmountable happens --

Of course I'd have no place to live and nothing to drive, but at least I wouldn't be stuck with something useless, like a house with a broken furnace I would have no prayer of replacing, or a car with a blown engine.

And since it's under the umbrella of the bankruptcy, it's a surrender so I don't think it is reported as a repo. But we never really got that far into it.

I actually was approved through 722 Financing -- something like 28% interest rate and I had to have $700 down, and payments for 4 years would be like $400. So, that's a bad deal, but in the realm of -- I would need some kind of car to drive -- these are the choices we are faced with.

My attorney further said I could buy a car for $1,000 and under for cash and not get trustee approval, but over that, even for cash, I would. And I asked if I had a bigger downpayment for a financed car -- because I heard that a lot when I was loan shopping -- you need like $3,000 to put down, no one will look at you with less than that -- would that raise a flag with the trustee? Like, how're they saving up that kind of money? And he said no.

Now, how I'd save up some $3K -- I invite you all to look outside and see if pigs are flying -- nope. So my old car and I limp along, and I hope to try to put some aside for either a more substantial car repair fund, a downpayment fund, or a "buy a better junker" fund -- so far, not so much, though.

But I know there is at least that 722 funding place and if I get truly desperate, I could go with that.

I am just over year into a 58 month plan. This month's payment will be number 15, 43 to go. Sigh. But -- 15 down! That's something.

I have been blessed with the most awesome attorney ever -- he answers all my questions and is just wonderful.

Hope this helps some,
cat