here goes

[STOGIES44]

did a search and couldnt get the right answers

Filed 13 in jan 2010.
2001 Truck has 150,000 miles and the trany is starting to go. truck is included in trustee payment. owe $9,000+ worth $4,000+
need to know my options

lawyer says I can turn truck in and money owed is gone.But am I responsible for the difference of what I owe and what its worth?

I know I need permission from judge to buy another newer truck first
questions I have are:
can my father buy the truck and I just pay him?
is it better to have him co sign?
Or is it better to come up with $2,000 and fix the trany and run it til it dies?


I dont want to buy a beater but nothing amazing either just want the same thing with less miles and years on it

[SMinGA]

For the truck in your plan: if you amend your plan to surrender the truck, any deficiency balance will go into your plan and be treated as the rest of your unsecured, getting a portion if your plan pays anything to unsecured.

For purchasing a new vehicle: if your father buys it, then you may have trouble getting the plan payment accounted for in your plan. You won't actually have a vehicle payment, and with all your DMI going into the plan you won't be able to pay your dad. Best move might be to get trustee approval for financing, have your plan payment reduced by the amount of your new vehicle payment, and see if your dad will cosign to help you get financing.

This all assumes that there is enough room in your DMI to lower your plan payment (so you can pay a vehicle payment) and still have a feasible plan.

[newbie2]

did a search and couldnt get the right answers

Filed 13 in jan 2010.
2001 Truck has 150,000 miles and the trany is starting to go. truck is included in trustee payment. owe $9,000+ worth $4,000+
need to know my options

lawyer says I can turn truck in and money owed is gone.But am I responsible for the difference of what I owe and what its worth?

I know I need permission from judge to buy another newer truck first
questions I have are:
can my father buy the truck and I just pay him?
is it better to have him co sign?
Or is it better to come up with $2,000 and fix the trany and run it til it dies?


I dont want to buy a beater but nothing amazing either just want the same thing with less miles and years on it

Your attorney is correct. You can surrender the truck now, and you won't have to pay the difference of what is owed and what it is worth.

Getting a car loan while in a Chapter 13 plan can be tricky. Ask your attorney if your father can purchase it, and if you can pay your father the monthly payments. I am sure if there is a clear paper trail (ask your attorney how to do this!) then it would be acceptable. Document, document, document everything for your attorney exactly as they wish you to do.

Good luck!

[Pandora]

You can surrender the truck now, and you won't have to pay the difference of what is owed and what it is worth.

Good luck!

Question - does this also apply to vehicles paid outside of a plan - or would the difference have to be rolled over?

[SMinGA]

Should be the same. The debt is still part of the bankruptcy, even if paid outside of the plan. A plan can be modified to surrender secured property, whether it be a house or car.

Question - does this also apply to vehicles paid outside of a plan - or would the difference have to be rolled over?

[Pandora]

Should be the same. The debt is still part of the bankruptcy, even if paid outside of the plan. A plan can be modified to surrender secured property, whether it be a house or car.

TY Ma'am - good to know

[jmac]

I have yet to file so i can't say for sure if it will fly, but the lawyer has said it will be no problem repeatedly while figuring out DMI. I had my mom buy me a truck and traded in mine and payment to get it Payment is 529.

[STOGIES44]

sooooo

Who is right newbie or sminga
one says it goes away the other says I will be responsible for it?

this will make a big dif. on if I just fix the truck or not.

Your attorney is correct. You can surrender the truck now, and you won't have to pay the difference of what is owed and what it is worth.

Getting a car loan while in a Chapter 13 plan can be tricky. Ask your attorney if your father can purchase it, and if you can pay your father the monthly payments. I am sure if there is a clear paper trail (ask your attorney how to do this!) then it would be acceptable. Document, document, document everything for your attorney exactly as they wish you to do.

Good luck!

[usmccop]

Who is right newbie or sminga
one says it goes away the other says I will be responsible for it?

this will make a big dif. on if I just fix the truck or not.

SM is correct. Once you dump it, they'll have the collateral. The balance will be treated as an unsecured creditor (if they file a claim). Based on your plan, it may make no difference at all.

[momofthree]

I agree with SM as well.

Surrendering vehicle = deficiency balance treated as unsecured creditor.

Having father (or anyone else) buy a vehicle for you under their own name and then making payments to them for said vehicle will not fly. Having the person co-sign would probably be acceptable, but check with your attorney to be sure.