Selling car to get a new car (no loan)

[159515951]

Hi everyone,

I can't seem to find a post that deals with this issue. We have a vehicle that was paid off in our 13 (we're 2.5 years in), and have the title -- it was not crammed down, so we own it free and clear. The vehicle is a gas hog, but worth around $16k still. We'd like to sell it and buy something that gets better mileage to get us through the rest of our 13. There will be no debt involved.

I can't figure out if this is allowed, and can't get a response from my attorney on this one. There is a form on the Trustee's website for selling assets, but the proceeds seem to go to the Trustee by default for distribution to creditors. There has to be a way to get this done and stay within the requirements of a 13.

Thanks for any input you can provide!

[justbroke]

Part of this depends on whether your property revested with you upon confirmation of your plan. When I write "revested" I mean a legal term which takes the property out of the bankruptcy estate, which was created when you filed, and puts that property back into your hands. Some Chapter 13 Plans keep the property in the bankruptcy estate. That would mean that the property is not in your control, but in the Trustee's control.

In any event, you should still consult with your attorney to make sure you follow proper procedure if the property is still part of the bankruptcy Estate (i.e., your plan is silent or your order confirming plan leaves all property in the bankruptcy estate).

[mavric]

WE were going to do the same thing. Car paid off in our ch13 and have title. But after looking at ch 13 papers ,it does not VEST back to us
until discharge. Ours is a $15000 car with over 100,000 miles was wanting to trade for something New under warranty,

[justbroke]

Remember, even if your property remains property of the Estate in Chapter 13s, you can always petition the court for Permission to Sell Property just as you could also petition the court for Permission to Incur Debt.