Car loan during open Ch 7 bankruptcy

[kidomanus]

I need to get a car loan to replace my vehicle which was totaled last week. I am in an open Ch 7 bankruptcy, after the 341 meeting and before the discharge. I've seen some companies online (like Washington Auto Credit) who say they will finance a car before the Ch 7 discharge, but was wondering if I needed the Trustee's approval. Any other info about auto financing during an open Ch 7 appreciated. Thanks.

[tobee43]

i would really contact your atty first...see what they say. of course what timing for you...so sorry!!

i would do nothing until you run it by the atty first. i just think if it were found out you were applying for loans or making a large purchase during your bankruptcy it may not fair well for you in the long run. i'm certain if your upfront they will work out something with you...after all, i'm certain the courts know most everyone (depending on where you live) needs some form of transportation...here there simply are NO buses...so without a car we would starve...

[despritfreya]

You are in a Chapter 7. No one cares if you get a new loan - assuming there is a lender willing to finance the purchase of a new auto.

HOWEVER, there is an issue with the old auto. Was there any equity in it? If so, how much of that equity is exempt? How much is the insurance company going to pay? Will it only pay off the existing lien? How much is going into your pocket? If any $$ is going into your pocket is that $$ exempt as traceable to the allowed vehicle exemption? This is what you need to be discussing with your attorney. Remember, your Trustee has an interest in the auto to the extent of any non-exempt equity. As a result, he also has an interest in the insurance proceeds. Hopefully this is a non-issue for you.