what if my auto dies while in Ch13?

[dunno]

We had an auto loan with $2500 outstanding when we filed in Oct08, on a vehicle with over 180K miles on it.

It died. Seized. That would take well over $2K to fix, so we sold it for salvage.

Anything we should/should not have done?

[EricaCallaha]

Did you consult your lawyer and the trustees office before selling it? You could get in big trouble as the asset is in the bankruptcy.

Call the lawyer ASAP and hold on to the money until he/she tells you what to do with it.

[BigJohn]

We bought 2 vehicles on time prior to filing. Our payments are made within the plan. By doing this, we get 2 vehicles paid for while in the plan instead of paying more to creditors.

[dunno]

We got $20 for it and they hauled it away.

Would've cost us to tow it or if it had been impounded for leaving it there.

---What difference does it make if we are still paying for it?

[EricaCallaha]

Because technically it is an asset...And you cannot sell an asset in the bankruptcy without prior approval from the trustee. Your paperwork probably spells this out. Since you really only got $20 for it, it is probably not a big deal, but be prepared to explain if you ask to incur new debt for a new auto loan.

Good luck.

[crookedoak]

similar tings happened to me while in my 13
Both my SUV and Minivan died and no money to repair

I bought 2 beater cars for 1600 and 1000 each and used them until they both died

then set up a deal with a local rental agency to rent vehicles from them

it is hard getting a new loan while in 13

my attorney said it could be done
told me to go to a dealer, and work out plans for a vehicle in given price range
could be no more than 350 per month
bring them the quote and terms and they would submit to trustee and get back to me in 30 days

dealers wouldnt talk to me with out prior trustee approval

just recently ended finding a RENT TO OWN place

I walked in with 5000 down and was out the door in 1 hour with 2 nice used SUVS

little higher payment than wanted but reasonable, 30mo/24500mi warranty and nice vehicles