Anyone been able to obtain financing for a car, while in a 13?

[optimistic1]

I know this has probably been asked before, but I am gonna ask it again, as this has become a conundrum for me.

If you were able to obtain the financing, who did you get the loan with? What was the down payment? What was your interest rate? What did your trustee allow?

The reason I ask, is because, I am contemplating about having my wife file her own Chapter 7 and get a quick discharge, and then file my 13 later, but still have my wifes slightly better credit to utilize if we need a new car at some point in the next three years. We only own one car, and to have us both in a 13, to me, is like rolling dice.

[Nicollette]

I know this has probably been asked before, but I am gonna ask it again, as this has become a conundrum for me.

If you were able to obtain the financing, who did you get the loan with? What was the down payment? What was your interest rate? What did your trustee allow?

The reason I ask, is because, I am contemplating about having my wife file her own Chapter 7 and get a quick discharge, and then file my 13 later, but still have my wifes slightly better credit to utilize if we need a new car at some point in the next three years. We only own one car, and to have us both in a 13, to me, is like rolling dice.

I was able to obtain financing for a newer vehicle, but I had to surrender my previous vehicle that was being paid for through my Ch 13 plan. If you have any other questions, just send me a PM.

[pcn]

The post above probably explains it. My question would be how it would be paid for. What funds are available for financing a vehicle, if in a ch13 all our disposable income is supposed to go to the plan. It would seem like something else would have to go, and I would be afraid if the trustee thought something could go, they would think, "Why not have the funds that were going to that 'something else' go back into the plan to pay the creditors"?

[woeisme]

I am in the process of this right now. We have 2 old vehicles, a 12 year old truck with 158,000 miles on it and a 10 year old car with 165,000 miles on it. My lawyer put in an amended plan on June 2nd that included $300/month for a projected car payment, citing that our vehicles were very old and broken down. The trustee hasn't objected yet, but we still have ~3weeks before we know for sure if the judge will approve the motion to change the plan payments this way for us. The lawyer thought it shouldn't be a problem, but I like to worry, lol! The last time we had a motion the trustee objected to it the very next day, then the lawyer changed a few numbers and resubmitted and the trustee withdrew the objection, again right away, so I'm hoping that since nothing has been objected to yet that it'll go through.

In the meantime, we've been looking for someone to finance us. That has not been so easy, as I tried several of the places that say they'll accept any type of credit, but when you tell them that you have to keep the interest rate under 18% or the trustee won't approve your motion to incur new debt, well... it gets harder. We did manage to get something lined up though, if the judge approves the motion to amend our plan payments to allow us the $300/month for a car payment. A local Buy Here/Pay Here place is is going to finance us. Their normal interest rate is 20% for bad credit like ours, but so that the paperwork would go through, we got them to bump up the cost of the vehicle a little bit so that they still get the same amount of $ total out of the vehicle as they would with the higher interest rate, but that the "on paper" interest rate is within the trustee guidelines. It's only a $7000 vehicle, and only a 2% change in interest rate, so basically they just added ~$200 to the selling price so that they would be willing to finance it and the trustee would be willing to accept the terms on the sales contract. We had some $ to put down on it too, which helps. We have been living under what the original plan proposal was by being frugal and putting the extra into our firesafe, so are able to put $2500 down on the vehicle. Probably would have had a harder time getting financing if we had nothing to put down on the vehicle (it's a Chevy Venture van with 58,000 miles on it that we are planning to buy once approval goes through).

So anyhow, it is possible to get a car while in a CH 13, but it takes time to wait for the paperwork to go through and some work finding someone who will lend to you.

One point that I think you might not realize, while in a CH 13, your entire household income is committed to the plan. So even if you wife is not named as included in the CH 13 because she already had her debt dismissed in CH 7, she IS part of the CH 13. My paperwork specifically states that no one in my household, whether included in the plan or not (so for example, my son) is allowed to incur any new debt that will affect our household disposable income while we are in our CH 13 plan, without prior approval from the CH 13 trustee. So you wife will not be allowed to finance a new car while you are in your CH 13 unless your trustee approves the motion to incur new debt first because your entire household disposable income is under his purview.

If you haven't filed yet, why don't you get a newer car now and hopefully avoid this whole issue? Sure wish we'd got a new car before filing! Good luck with whatever route you decide to go!

[optimistic1]

Well worst case scenario, would probably have to drive a clunker, or rent a car, until I can get everything approved. Thanks everyone

[indebt00]

We are going to be in this same boat in 3.5 yrs when our lease it up. The lease pymt is part of our bills now and the court will know. So we would be replacing existing debt/monthly pymt...so I guess that is helpful.

but the thought of getting financed is another story