Updated Budget for Auto Loan Approval

[txmommy]

Hi everyone!

I am so glad I found this place! I have a question that I don't want to wait until Monday for (that is when I can talk to our attorney)...

My husband and I are trading in a very used Nissan Pathfinder that is giving us issues. The dealership is offering $5k, which is fair considering it will not even run right now and the Private Party Value on it (if it were running) is $6k.

We will be purchasing a 2005 Nissan Armada with low miles, and need to finance the difference (approx $10k).

My question is, we are needing to update our budget for the trustee approval and I am wondering what they are looking for in regards to Excess Income?

With our 'normal' budget, I am showing $800 in disposable income. Is this too much? Too little?

I am a little worried that they might see that $800 and decide to increase our payments for the BK. Can they do that?

Also - does anyone know how long it takes for the trustee to approve these types of things? We are down to one car and it is tough with 2 jobs and 2 kids!

Sorry for the book!!!!!! I look forward to your responses.

[BigJohn]

Did you think of buying a new car? Possibly a 2008 model? Some of the new 2009 models are going for under $11,0000 and a 2008 model should be a lot cheaoer,

[txmommy]

Actually, the 2008's are all 30k +. WAY too much in my opinion. Our goal is to pay off the Armada in one year (but finance for 48 months). We have always paid off our cars early (usually between 1 to 2 years).

We are putting in the request for the letter from the trustee on Monday. I am praying they can get the letter to us in less than 2 weeks. Is that reasonable?

[lrprn]

My question is, we are needing to update our budget for the trustee approval and I am wondering what they are looking for in regards to Excess Income?

It depends on what car payment you end up with and how much it changes your total expense amounts. If there's a significant difference now with the new car payment, then talk with your lawyer whether it's appropriate to submit an amended 13 plan to your trustee.

Most lawyers will advise you to keep the new car payment as close to what you submissted for your confirmed plan as possible.

With our 'normal' budget, I am showing $800 in disposable income. Is this too much? Too little?

How much disposable income did you show when you filed your confirmed plan?

Also - does anyone know how long it takes for the trustee to approve these types of things? We are down to one car and it is tough with 2 jobs and 2 kids!

It depends on how busy your trustee is. It wouldn't surprise me if it takes 3-4 weeks or even longer to hear anything. Ask your lawyer - he/she will have prior experience with what your trustee does in this situation.

[sharina]

lrpn:
what do you mean by this?

Most lawyers will advise you to keep the new car payment as close to what you submissted for your confirmed plan as possible.

[sassiebaz]

How do you plan to pay this vehicle off in a year if you are still working from your chapter 13 budget? Will you be paying extra payments outside of the plan? If so, isnt that going to be a problem?

[krielly]

I agree. no extra payments during your 13 on your car. If your trustee finds out, he'll increase your payments into your 13 by the amount of the car payment. Or, even worse, dismiss your case......

Don't mean to pee in your cheerios.........but beware!