Totaled car, not confirmed, OF COURSE THIS HAPPENS!!

[cawells]

We filed our Chapter 13 November 2009. After 4 objections from the pickiest Trustee EVER our confirmation hearing is FINALLY scheduled for the 29th. The other night a car turned in front of me totaling the car I had planned on keeping for the next 5 years. I still owe $1,000 on it that is paid for outside "the plan". After that is paid off I will have approximately $6000 insurance money. Part of me says I should take the cash and buy a 5000 car and be done with it, but the other part says I should tell the lawyer, get the trustee involved, get permission for a loan, blah blah blah. I would have no problem asking the Trustee if, as I said before, IF they were not the pickiest person on the planet and I'm living in terror of this confirmation not happening at all because someone else can't drive. Any advice would be most helpful.

[steveok]

If you think the trustee is picky now...I wouldn't even dare try to run anything under the radar...Best visit with your attorney and keep everything on the table..I feel you are asking for trouble in the long run if you try to be sneaky..

[jetsfan2010]

Yeah if you feel your trustee is combing over everything then you need to let them know what happened. The decision to buy a car with the insurance money vs. getting a new car via a loan is one that only you can make, and one can see the justification in either way you go..

[AngelinaCatHub]

Your insurance is made to "make you whole". Telling the Trustee is the proper but in this case not the prudent thing to do. You have every right to replace your car with whatever the insurance has attempted to "make you whole" over whatever amount. Sounds like your Trustee would attempt to impound you insurance and spend it on the C13.

I'm all for doing the right thing. Do it after you are making yourself "whole". 'Hub

[lrprn]

You absolutely must tell your lawyer. Since you filed, technically your trustee has complete financial control over the totaled car. Not the time to be keeping secrets from your lawyer, and definitely not the time to be trifling with a picky trustee who can dismiss your case if the "switcheroo" is discovered during your confirmation process (as it certainly can be when the trustee's staff investigates the financial background of your secured assets).

We've had other members who've had car accidents happen after filing but before confirmation. Actually having this happen before confirmation is easier to handle than afterwards. Your lawyer will protect your interests and file an amended plan that includes the new car purchased with your insurance money. The key is to keep the car payments at a level your local bk court finds acceptable. Your lawyer will know what this is.

Don't be foolish. Call your lawyer the first hour the office is open after the holidays and find out how to best approach this situation. I guarantee you it's happened more than once already in your local court, so there's history for what to expect. Good luck - I have a feeling everything is going to turn out fine for you in the end.