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Car troubles in a chapter 13

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    Car troubles in a chapter 13

    My old beater car finally died on Wednesday at nearly 200,000 miles. The vehicle was a backup vehicle and used by my sister for work. My husband and I have a few hundred tucked away for emergencies. We need to find another beater pretty soon.

    We filed for bankruptcy on November 30, 2006. We had to file for a modification and our attorney is anticipating the discharge to be in March 2012. I thought all chapter 13 cases were to be discharged by the end of 60 months. She said that as of December 2010 that we owed around $17,000 still on the claims. We pay $1100 a month in court payments and have paid close to $9000 on the $17,000. So we owe about another $7 to 8 thousand and then we should be done.

    In the meantime, we have to figure a way to pay for another vehicle. My husband has a 401K that we were funding until the bankruptcy. The Trustee demanded that we stop funding the plan in order to incur debt for our present newer car in 2009. Our old car broke down but we were able to get a loan for another vehicle. The 401K has about $3000 in it. If we could take out a hardship loan on the 401K of about $500 then we could purchase a car from a dealer who has one for about $1000. He is offering to include the tax and title at no extra charge.

    If we were out of the bankruptcy then our car dealer would do a buy here, pay here for about $100 a month for an older car.

    We're really close to a discharge and want out of it successfully. What are the other options to find the money to purchase the beater car? Thanks for any help.

    #2
    Since you are still in an active Chapter 13, you need to take this up with your attorney. I would not touch your 401(k) plan while in your Plan without first discussing with your attorney.
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006

    "A credit card is a snake in your pocket"

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