where does the new car debt $ come from, in a 13?

[witeout]

Can someone explain the process to me, plan wise, when buying a car during 13?
We went into 13 with a almost dead car, big mistake, but we were trying to live frugally.

We are checking into cars and we do NOT want to buy someone else's used $$$ car problems. (money pit)........ We need to get a new cheapest model possible.
Even with this, the payment will be high?

Where do these funds come from? From money to the creditors?
Because our after plan funds will not accommodate a car loan.
We barely survive in our 13 plan as is? (Family members have health issues that we can't even afford to fully care for).
If there were car $ available , I truly believe the trustee would have taken it?

Thanks if you can explain the process to me.
PS----- We are in year 2 of a 5 year plan.

[catleg]

You would have to modify your plan to let you spend the allowable car ownership expense for your district (does this vary by district?).

[frogger]

No way under the sun that I'll ever buy another "new" car. Get a low mileage, 2 year old car for 1/2 the price of new and still covered under warranty.

[Pandora]

We barely survive in our 13 plan as is? (Family members have health issues that we can't even afford to fully care for).

Thats not good; do you owe back taxes or are all creditors secured? Are you trying to keep assets you couldnt exempt? Your Ch. 13 plan shouldn't be punitive by any means and most certainly you shouldnt have to put off health care that is necessary for family members. If your entire plan is going to priority, secured or non-exempt assets you want to keep, then modifying it will be very hard to do; however.... if the majority of your plan is going to unsecured creditors, then you should be able to modify any necessary areas up to or above IRS standards (depending on what the category is / reason for going over, such as medical expenses).

Did you at least claim the IRS allowances in your 13 plan? Did you account for every single expense you pay for throughout the year for medical (including any deductibles you may have)?

ETA: I agree with frogger re: car buying. You lose quite a bit as soon as you drive off the lot; look for used rental cars or other used cars that are still under warranty. Rental cars usually are sold with no more than XXX amount of miles on them (required) and are still under factory / extended warranty.

[witeout]

My pay back % all say 100%.
However, really we are only paying a 4 people:
1. atty
2. house arrears
3. Smaller CC balance due to credit union (this is the only unsecured) Currently my plans pays them zero monthly?
4. Our 2006 vehicle (we need have to have 2 reliable cars due to husband working far away oddball hours, 16 hours a day. As of yesterday, we are now down to one reliable).

The only thing I see above that can be adjusted would be the CU unsecured correct?
Though for some reason, they are the 1 of the 4 that currently gets no monthly payments at all?

Our BR payments are a little over $100 a week currently.
Though this will jump big time when we have our 401 K loan paid off....
It will double actually. Which is odd because we seem to be paying more in the 13 than we initially owed?
Though atty fees add up and it's impossible to know the interest rates and late fees and how they would have progressed over time?

Thanks for your help everyone. I just cant see where the $ comes from because I don't understand how this all works. We have been in survival mode since the day we filed. We never got that "breather" that the commercials talk about when they advertise chapter13.

Also please send positive vibes my way.
I am still struggling with the well off people in my area who filed 7 and have such a nice life. I have to park beside them at school in their new leather loaded massive SUV's. I see the designer clothes they wear and see where they eat out.
Their kids get to be in a ton activities.
I could go on and on.....
Chapter 13 sucks......
But at the same time, I know that 3+ years from now it will be over and I will be grateful.

[frogger]

I am still struggling with the well off people in my area who filed 7 and have such a nice life. I have to park beside them at school in their new leather loaded massive SUV's. I see the designer clothes they wear and see where they eat out.
Their kids get to be in a ton activities.
I could go on and on.....

And those people probably got right back on the debt train headed to ruin. Don't fall into the same trap as some people do, and worry about living your own life, now how everyone else lives there lives.

[Pandora]

Okay, makes sense now. Most of your $ is going to the arrears on your house...on top of your regular mortgage payment that must be made. Yes you're correct, the only thing that may be able to be modified is the unsecured creditor and I'm not saying that you fall into this category, however the biggest mistake many people make and why Ch. 13's ultimately fail is because they overlook the huge factor of can they really afford their home.

As to purchasing a new vehicle, you'd have to surrender one of the older ones, modify your plan, and then hope the trustee gives you permission to seek a newer one; this is why many lawyers advise to purchase a newer vehicle prior to filing.

Are you certain you're at 100%? Are you viewing that data on 13datacenter or on your actual Confirmation paperwork that was signed by the judge? You state your payment will jump "big time" once your 401K is paid off..... so what will it go to?

Is there any way you can convert to a 7?

[witeout]

Oh my! We can't surrender our one running reliable car?
One option is to take my hubby to work nightly, an hour away, 2 hours round trip, every night, 6 days a week for 3 years :O He works at 1am.
So my kids will spend their sleeping hours in a car 6 nights a week?
Not to mention the pick up times that are unpredictable? Thats 4 hours a day in the car?

Here if you surrender your home, you get sued for the difference so I don't see the break there?
I did not want to bore everyone with the details but we kept our home because one of our children has severe health problems and one big part is avoiding "sick homes".
Landlords here are not known for keeping healthy homes, environmental wise.
It was costly getting our 10 year old home healthy enough after some builder screw ups.
So we basically are trying to keep this environment for her so she can stay out of the doctors office and or hospital.

You wont believe how fast a brand new home can turn into a "sick home".
It literally can be full of mold, dust mites and worse in 6 months.
My home is spotless and pretty but it was still "sick" if that makes sense.

OMG I'm so stressed out that our 16 year old car died :...(
We buy new, replace engines, and drive till the wheels fall off.

PS Had to edit to answer your questions, sorry.
Yes I am reading the data off the site and I am 100%, though again I only pay 4 people total.
The 401 K payment will go from $400+ to $700 I believe. So about 3 years of the higher payment. Dont have the forms in front of me.

Oh and thanks for reminded me not to think about others lifestyle.
I call it Chapter 7 Envy LOL.

IF anyone reads this before you file 13, make sure you have 2 reliable vehicles BEFORE you sign that paper. It's possible that your old beaters will not survive a 5 year chapter 13.

[Pandora]

It sounds like perhaps your lawyer may have recommended a CH. 7 due to the house cost / arrears that a Ch. 13 would bring, but due to medical concerns, you chose to keep it. Remember you can be over median and still file CH. 7 - its the DMI that comes into play. You need to sit down with your lawyer and really go over everything in your plan, especially since your child is sick and you stated you cannot afford to address some family members health concerns / issues. If you cannot modify due to wanting to keep your home, then you'll have to make it work somehow within the constraints you're currently in unfortunately. As to obtaining a new vehicle, you're going to have to give up something in order to do it; either way you'll have to get permission from trustee and modify your plan to include the old car as well as new car (if you're able to).

[catleg]

You can possibly lengthen your plan if it's between 36 and 59 months.
Also you mention a step-up when your 401k loan ends.
You should propose a new plan to use that money for a car payment, using another 401k loan if necessary and possible.
I hate those damn step-ups, I've got one in my plan too.
It's very unfair, trying to squeeze us like a lemon to make lemonade for creditors.

[witeout]

Thanks everyone! I really mean that.

I believe we did not meet the criteria for 7? We just went in, and our atty is VERY good so we felt secure just working through the process with him and 13 was the road we were put on. When your totally stressed it was nice to have an excellent atty.

The step up is coming very soon so I will look into that idea!
Though I believe they need that $ to satisfy the secured debts?

Thanks again!

[catleg]

I agree with the thought that a new car is a waste of money, try to find a good brand used car (e.g. Honda, every cheap bastard I know drives a Honda, they must be onto something).

[witeout]

We ONLY drive Hondas. The one that just died is a 1996.
By the way, IF the mechanic can find an engine, he can replace it for 3K. Then it needs 2k more work. But for a 1996 Honda I think thats very fair.
The problem with all this is the chapter 13 of course.

I found a Nissan and a Toyota that are new and costs 12k and 13k. It will be hard to go away from a Honda but a used Honda is more than these brand new ones. Hondas hold their value. Granted I don't even know if we can get financing....so....

[witeout]

Can anyone help me come up with a plan B?
I am curious if it's better to pay the 3k and replace engine etc..?
Typically thats always my first choice but this time we are pinched $ wise?
Can something like that be worked into the plan? The car needs 2k more but not urgently.

My research into buying a new car today seemed to bring nothing but bad news.
At least with the new engine I'm pretty set if that makes sense?

Can that be worked into my plan somehow?
I have half that amount currently saved, $1500.
Then I wont have higher tags, taxes, and raised insurance?

TIA

[newbie2]

The only way the repair money can be worked in to the plan is if you can be excused from making plan payments for the length of time it takes to come up with that money. The plan itself won't give you a check for the $3000. Have you talked to your attorney yet about what is going on?