cash purchase for car

[joekel]

I was wondering if we purchase a car for cash during our chap 13 do we have to tell the trustee. we are in a 5yr 100% payback thanks joekel

[debtinohio]

No - just if you incur debt I've had this same question for my attorney.

If, by chance, you are given a $ amount in your budget from the Trustee for a car payment and instead you choose to drive a cheap old car check with your attorney, I would assume the maintenance allowance would cover the difference but verify to be sure.

[joekel]

Thanks

thanks for your answer we are getting a financial settlement and are in need of a newer car

[momofthree]

Have you already notified them of the cash settlement to confirm that you are allowed to spend it rather than turn it over to them?

[joekel]

no

we are in a 100% payback over 5 yrs

[newbie2]

we are in a 100% payback over 5 yrs

Joekel, it probably won't be an issue (receiving settlement money) but I would talk to your attorney first. Many people in 100% plans still have to pay any extra money to their trustees because the trustee and bk courts would want the plan paid off sooner rather than wait the 5 years. I wouldn't jeopardize anything at this point by making an assumption. Talk to your attorney first.

[joekel]

Thanks

we will atty in morning