13 dismissed - car included possibly surrendering before re file?

[jetsfan2010]

Been quite a while since I posted on here but alot has happened with my 13.

1. My car(which is financed and included in the 13) started to give repair issues. A 2006 Altima driven 75 miles a day commute to work had over 2k of repairs done, which caused me to fall behind on my 13. Its the only car I have, and I could never catch up on the payments. The trustee offered 1 option of making up the difference over 3 months added to the normal payment, but I realistically knew I couldnt do that, so a dismissal occured.


2. I am looking at possibly surrendering the car at this point, as I owe 19k total and the value is approx 11k. A friend of mine is a sales mgr at a local car dealership and said the payoff would be a dealbreaker for me to get any financing done for a new car as it stands currently.

3. My 13 primarily was made up of
a. back taxes federal x state (25k)
b. secured car (19k)
c. unsec debt 100% payback plan (30k)

If I attempt to re-file a 13 surrendering the altima I am upside down in, should I attempt to buy a new car BEFORE doing so?

[lrprn]

Welcome back, jetsfan. Sure wish the circumstances were better though

Did your lawyer arrange the deal with your trustee for staying in your plan or did you call the trustee yourself? Did you attempt to replace the 2006 car before your case was dismissed so your plan could be amended to incorporate the new car payment? (Just filling in the blanks....not trying to point any fingers.)

Unfortunately with a brand-new Ch 13 dismissal on your record and all the debt entries on your credit report now flipping back over to lates with penalties, car financing just became that much more difficult. Can your car sales manager friend help out? Does your lawyer have any advice about dealers in your area who are more bk-friendly? Do you have enough cash to buy a car outright and let the car loan you have default? One more default at this point isn't going to matter much.

Do you plan to refile your 13 at a later date? If yes, when?

[jetsfan2010]

Welcome back, jetsfan. Sure wish the circumstances were better though

Did your lawyer arrange the deal with your trustee for staying in your plan or did you call the trustee yourself? Did you attempt to replace the 2006 car before your case was dismissed so your plan could be amended to incorporate the new car payment? (Just filling in the blanks....not trying to point any fingers.)

Unfortunately with a brand-new Ch 13 dismissal on your record and all the debt entries on your credit report now flipping back over to lates with penalties, car financing just became that much more difficult. Can your car sales manager friend help out? Does your lawyer have any advice about dealers in your area who are more bk-friendly? Do you have enough cash to buy a car outright and let the car loan you have default? One more default at this point isn't going to matter much.

Do you plan to refile your 13 at a later date? If yes, when?

Thanks for the reply. Heres some answers to the ques you posted...

1. No my lawyer did not arrange anything with the trustee re: the car. He was working on making a payment plans to keep the payments in arrears taken care of. I did attempt to replace the 06 before the plan was dismissed, and was told by the finance guy things would work if the payment for the 06 wasnt in play. I asked my lawyer about bk friendly auto dealers and he told me of 2 places, 1 of which I have read too many negative things about(Drive Time) and the other I will have to check out. I dont have enough cash right now to buy a car outright(at least a semi-decent one).

I do plan to re-file my 13 as the tax debt and potential deficency balance of the car(if I let it go) would be all lumped together.

[jetsfan2010]

just left my new lawyers office, he stated a 7 would be more realistic for mean, as I just meet the states means test for income and if I surrender the car it would work. Looks like thats the plan. He looked over my schedules of the last plan and said the way the old lawyer set up my plan was set up to fail from the start, starting with the 100 percent payout

[lrprn]

Good to hear that you found a lawyer who is representing your interests better. Good luck to you on your Ch 7 journey!