Filed Today and Auto Question

[Smokinjbc]

Well...

My payments are almost twice as much as I expected them to be but I think I can manage it. At least it's only three years, not five. But I am relieved to at least be addressing my tax issue and not staying up nights worrying about going to jail for not filing my taxes .

My question is regarding my car. I am keeping it, and I have a little less than $1400 left in payments to make. So it should be paid off in Nov/December. I asked the paralegal whether the trustee would immediately want to seize that car payment or if I needed to worry about that. It's an older (2001) truck, high mileage and I very likely will need to replace it within the next two years. I was hoping to be able to save some money for a down payment, but if I they take that $$ too, I will be stuck. I may have to kick my boyfriend out so I'm not getting his contribution LOL (mostly kidding!). Has anyone had experience with this scenario and what happened?

[AngelinaCatHub]

Errr, well no. My wife won't let me have a boyfriend, but, I'm not up on 13 as I am on 7 but pay the truck off and drive the wheels off of it. They last longer than you think. As far as taking your truck payment from you, I honestly cannot say not knowing all your background as well as C13 procedures. Hope this helps a bit. 'Hub

Edit: BTW, you won't go to jail for taxes unless you break the law attempting tax fraud. Not being able to pay is not a jail sentence. They will work with you.

[rpg1977]

We have a 401K loan that will be paid off within the period of our BK 13. In the forms we filed, the attorney wrote out "debtors plan on using money after 401k loan is paid to purchase new vehicle since current one will be over 8 years old by then"

She seemed to think that the trustee would go for it and she says she always does that in the forms.

I wonder if you can ask your attorney about that? Maybe putting in that you plan on using the money freed up from the car payment to put toward a newer car.

[lrprn]

My question is regarding my car. I am keeping it, and I have a little less than $1400 left in payments to make. So it should be paid off in Nov/December. I asked the paralegal whether the trustee would immediately want to seize that car payment or if I needed to worry about that.

A lot depends on your trustee's customs in this situation. Your lawyer has likely seen this situation before and can advise you about what to expect when the car payments stop.

It's an older (2001) truck, high mileage and I very likely will need to replace it within the next two years. I was hoping to be able to save some money for a down payment, but if I they take that $$ too, I will be stuck.

I know this is an cruel suggestion, but you really need to start saving as much as you possibly can right now. Hopefully by the time your truck bites the dust, you'll have saved enough to buy a cheap but reliable used car for cash to get you through the rest of your 13.

If the truck does give up the ghost and you have no alternatives, your lawyer can approach your trustee to get permission to buy a car before your 13 is over. The one bright spot in that situation is that it's likely to replace your paid-off car's payment . The dark spot is that the loan terms you will be offered in an active 13 are terrible - APRs in the high teens at least. But it can be done if you really work at it.

Good luck! Hope your vehicles behave themselves until you can create some viable options for yourself.

[Smokinjbc]

Thanks...

I will continue to drive it as long as it lasts- my main concern is that with a Chapter 13 payment already making it nearly impossible to save significantly, they will also take the money that went to the payment when it's available. I did ask the paralegal and she just gave me a "they might" answer.