Totalled vehicle while in 13

[becky20]

So dh had yet another accident (again, not his fault) and we're waiting to find out if the insurance will fix it or total it out... I soooo don't want to deal with this, I'm so stressed waiting to hear the decision of the insurance company.

So if they total it, how do we proceed? The truck payment was in our 13 and the value was being crammed. So what in the world will happen if the insurance totals it? I'm guessing the check they cut for the truck would go to the trustee, which would go to the lender (the amount that was crammed anyway). How long does it typically take for approval, how much could we expect to be approved for, will our trustee payment go down since the truck would no longer be included in the payment? I'm beyond stressed!!

How hard is it to get an approval for a loan while in a 13, and what should we typically expect for an interest rate?

any experiences you could post would be greatly appreciated!!! Hoping it doesn't come to getting a new car, but this is the second time the same area is damaged in 6 months, both pretty hard hits, so I wouldn't be surprised if they decide it's too risky (and too expensive) to repair

[becky20]

Anyone? I see 65 replies but no posts?

Has anyone had to get a car loan while in a 13? If so, assuming you got approval from the trustee, how difficult is it to find a dealership or loan place to work with you and what interest rate did you end up with? Does the trustee give you a price limit or monthly payment limit?

I'm still trying to be hopeful that the insurance will fix it, but trying to prepare myself in case it goes the other way...

[justbroke]

Okay, here's the skinny.

You need to work with your lawyer. You need to file a Motion to Retain Insurance Proceeds and Substitute Collateral. Not all lawyers have experience with this, and TIME IS OF THE ESSENCE. First, you need to intercept that insurance check and make sure it gets sent to you (the debtor)... even if it's written out to you and the creditor.

Your lawyer files that motion and hopefully, the Trustee and the creditor agree. Then you take the proceeds and buy a new car with the proceeds. You then have the court allow the creditor to place a "lien" on the "new" car that you purchased with the proceeds (Substitute Collateral).

This doesn't work in all Districts and not all lawyers know how to do it.

[becky20]

Thanks Justbroke!!! I'm still hoping they fix the truck (no news yet and I'm so dang stressed waiting to hear) but it's interesting to hear that something like this exists!! I never would've guessed this was possible.

[becky20]

Just got news, they're fixing the truck, so phew, don't have to stress about this any more!!! Thanks for the advice Justbroke!!!

[justbroke]

Excellent! I hope everything works out just fine.