Totaled car that was included in my bk plan

[cbmmom5]

Hello, this past Saturday I got in a car wreck and I am pretty sure the car is totaled. I have insurance on the car with a $500 deductible. The car was stripped down in our bk plan so we still owe around $2500. I am sure if the car is actually totalled the insurance check will need to go to the trustee and we will be out the car and the money. We cannot get another car because we do not have the credit to get one. Do you think the trustee willl do any thing, like skip payments to help us get another car? Does anyone have an idea for us. Thanks very much. Connie

[Flamingo]

You need to speak immediately with your attorney about this. You will need to provide the attorney with all the information from the insurance company as to the vehicle and information from the insurance adjuster. Depending on your plan and your finances, it is impossible to advise you as to what your trustee may or may not do but the first thing you do is contact your attorney and provide him/her with all details and the above information ASAP.

[ShooFly]

Wow, sorry to hear that! I would think that the trustee would control the insurance check and let you get another car with the left over money. Suppose you only have $2000 left after the loan is paid off... then you will need to buy a $2000 car for cash, which the trustee would also control. This seems most logical to me because you need a car to get to work, right?

[cbmmom5]

Thanks for the replies. We spoke to our attorney and he said we need to get all the details from the insurance company and then if the car is actually totalled we could speak to the trustee about amending the plan to allow us to afford a monthy car payment. I am hoping that means our payment to the trustee would go down some and we would then have a car payment. I am also assuming we would be allowed a car that would be worth only what our own car was worth, $ 2,000. Does any of that sound logical to any of you? Thanks for the feedback. Connie