Chapter 13 auto loan

[Deon213]

I am in a chapter 13 and have one car in the plan and another car paid for. we really need a new car. We are only one year into the plan.
- we went to a shop to see if they would approve us and we got approval but didnt move forward because unsure if we have to tell the trustee. Do we have to tell trustee?
- which car should we trade in the car that is paid for or the one in the plan?

Thanks

[IamOld]

Others will chime in but PLEASE let your atty know asap. In most Ch 13's, you need the Trustee's permission first before taking on new debt above $X...(ours is $5,000) - also, your DMI may change, etc.

[Deon213]

Thanks for your response. I appreciate you taking the time to provide input

[Flamingo]

You need to contact your Chapter 13 attorney to go over this as he/she will need to review your financial situation and will contact the Trustee to obtain permission for you to purchase a car. Without that permission, no reputable dealership will touch you while in an active Chapter 13.

[Nicollette]

I am in a chapter 13 and have one car in the plan and another car paid for. we really need a new car. We are only one year into the plan.
- we went to a shop to see if they would approve us and we got approval but didnt move forward because unsure if we have to tell the trustee. Do we have to tell trustee?
- which car should we trade in the car that is paid for or the one in the plan?

Thanks

I'm surprised the dealer didn't tell you that in an active 13, you'll need a letter from the trustee, or BK court with permission to incur new debt? First, you'll have to contact your attorney to discuss this matter. If he/she feels its feasible, your plan might have to be modified first, and then your attorney will present the paperwork to the trustee. At least, thats how it was for me.

I just noticed you had said which car should you trade in? You would definitely have to contact your attorney, because my plan had to be modified, and I had to surrender the car that was in my plan, within so many days of driving my newer car off the lot.