Help w/car in 13

[billex]

Question about replacing car



I need some help.
My wife and I filed ch 13 (5 year plan) - 8 months ago. One 2006 Chevy in the 13 and a 2002 dodge ram paid for with a cracked head and bad front end. Mortgage and 13payments have been on time, our ch13 payment seems high to me at $950, but we could swing a small car payment. We need dependable/safe transportation not only to get to work but have a 8 year old child also!
Does anyone have anyone have any suggestions on how to proceed to get financing for a newer vehicle to replace the dodge.
The lawyer told us if we needed to file a motion it would be $250, can I just go to the trustee? And what is the best approach with dealer, do I get approval 1st? What can I expect for terms, % wise.
Thanks In Advance!

[kakdbass]

Hi billex,
First, you go to a dealership willing to work with Chap. 13 and pick out a car within your budget. The finance dept. will then obtain 'pre-approval' on a vehicle and send a proposal/invoice with purchase price, amount of down payment/trade, interest rate and estimated payment to your attorney. No loan company will officially approve you for a loan without trustee approval and a signed order granting the motion from the judge.

Your attorney will then submit a 'motion to incur debt' and amended I and J forms to the trustee. Your motion will be sent to all debtors which will be given 21 days to respond. If there are no objections by creditors or the trustee, the motion will be sent to the judge to be signed. After the motion has been granted you can finalize the loan. : )

Expect a pretty high interest rate. I've seen interest anywhere from 14-25%. I'm currently going through this process myself and the only issue I've had is my attorney dragging his feet to file the motion and then an objection from the trustee because the paralegal failed to file amended I and J's. : ( Like I said I'm from MO, but from all the research I did online it seems the process is similar throughout the US. Good luck to you!

[mountanddo]

Is this something you can expect your attorney to charge you more for or will they do this within their chapter 13 fee you've already paid?

[billex]

Thanks for the reply - I will start the process:-)

[debtinohio]

My lawyer wanted $$ to file my motion to incur debt. I told her to file a motion for additional attorneys fees which she did and all fees were added to my plan.

[kakdbass]

My attorney didn't ask for addition fees to file my motion, which is shocking!