57 Month of Chapter 13 - First Big Bump in the road

[newtonj44]

We are entering our 57th month of Chapter 13.We have been very fortunate in our Chapter 13 journey to not encounter any major problems. We've had a few bumps along the way but have stayed under the radar of the Trustee.

Last month our primary vehicle (included in plan) was totaled (2008 Toyota Highlander, 298k miles). After talking to our attorney we have decided to ask the Trustee for permission for a vehicle loan. The loan we will be requesting meets all the requirements set forth by the court.

Question - Anybody have any positive news about receiving permission to get a vehicle loan for North Carolina Middle Bankruptcy Court - Trustee Anita Troxler?

Thanks.

[hcorreia1]

I don’t have any experience asking for permission to purchase new vehicles, but have seen articles where is this petty routine. Just curious how will you be able to get a loan while in chapter 13 and I am assuming your credit too a hit .

[Carmella]

I am not in North Carolina, but my car was also totaled, not quite as close to the end of my BK, but last October.

It all went smoothly for me. I would find a dealership that knows how to deal with BK or "bad credit." I didn't go to one that advertised "bad credit" but I called talked to someone about being in active BK and the finance guy knew how to help us. The first dealership I went to was pretty clueless and didn't do squat for me.

The first thing I had to do was go to the dealership and get approved for a loan and a car. Not the EXACT car I would purchase, but one in the price range and it cannot be a luxury car. Then I submitted that info the lawyer, also some info regarding the accident to show my car had been totaled. And it was approved much quicker than I anticipated.

Since my car still had payments, I had to deal with the at fault person's insurance which slowed down the entire process since they had to pay off my totaled car and then cut me a check.

hcorreia1 I was surprised it was easy enough to get a loan and my interest in under 7% so not too bad considering I was in active Chapter 13. I feel they are more lenient, knowing a car is totaled and the debtor needs a car to get to work to keep paying the payments! I do think that having a dealership that knows about financing during BK made a huge difference. They told me the car they recommended had good resale potential which made it easier to get a loan because if the car was totaled or stolen the creditor would be reimbursed. So you need someone who knows how the play the game.