Initial vehicle cramdown, later surrender

[mylife]

If a vehicle "breaks down" after the value was crammed down in the plan, is it possible amend the plan to surrender it and be approved to get a loan on a new car if the repairs are costly? Or surrender it just because?

Thanks

[HHM]

It shouldn't be a problem. Will take a little time, but you may later surrender a crammed down vehicle.

[mylife]

Thank you HHM!

[jetsfan2010]

What if you werent able to cram down, but want to surrender to get a new car? How long does that take?

[lrprn]

What if you werent able to cram down, but want to surrender to get a new car? How long does that take?

It's going to vary depending on how busy your lawyer is to make the request to the trustee's office, and then how busy the trustee's office is to move the request through. Most trustees will give you a loan range you can look for - typically one that keeps a car payment very near the current car payment.

Unless you can pay for a new (to you) car in cash, think carefully before deciding to go down the "surrender and buy new" path. It's very tough to find an auto loan of any kind during an active Ch 13 and the terms will very likely be awful. If financing will be needed, ask your lawyer if there are bk-friendly lenders in your area and research what kind of financing you can get. Then compare what financing you can get against paying for repairs to keep the old car running through the end of your plan.

[jetsfan2010]

Thanks for the info lprn. I will do some research to see what is best.