Atty advice regarding new car

[Lissy]

I've posted about this recently, but just a short recap. A little over a week ago, I was in a bad car accident and my car was totaled. I now need a new one. My old car was worth $4k more than I owed, so I will be getting that money back, which I plan to use as a down payment on the new car so that I don't have to finance as much.

I filed my Chap 13 end of February. I have not been confirmed yet, I haven't even had my 341 meeting yet. My atty told me to go ahead and get a new car and try to do it without having to get the trustee's approval. He said if the dealership or financing company requires it, we'll do it. But since I am just replacing my totaled car, as long as I don't buy a car with a huge monthly payment, he thinks it will be fine. We'll just amend my schedules to remove my old car and put the new one on. He did admit he's never had a situation like this, where something like this happened so soon after filing. I can't imagine the trustee would object to this, but it does make me a little nervous. I certainly don't want to piss him off before being confirmed. Thoughts?

[SMinGA]

I believe you mentioned before that you were approved thru Roadloans? Were there any preferred dealers near you with potential inventory (to meet your car needs) that use Roadloans?

[Lissy]

Yes, I was approved through Roadloans and there is a Preferred Dealer in my area. I have not visited the dealer yet, though I have been looking at their website. I am waiting for my check from the insurance company so I will have my down payment.

[Lissy]

I'm a little worried now. I got a call from my insurance company saying the payment to my lienholder had been stopped. They needed my BK case number to proceed with the claim. They have to wait for some kind of letter from the trustee. I guess that got flagged because my old car loan was included in the BK? I asked the woman if my $4k would be processed when they get the letter from the trustee as well and she said it would. Anyone know if the trustee can intercept that? If I can't have it, I won't be able to come up with a down payment for a new car. In the meantime, my insurance company will no longer cover my rental car after Wednesday, so that will be coming out of my pocket. This just keeps getting better.

[SMinGA]

Assuming the equity in your now-totaled car was exempt, you should get the funds. Would probably be a good idea for your atty to contact the trustee though and also get a letter granting you permission to purchase a replacement vehicle.