Filed Ch13 Yesterday!

[Anonymous]

well I finally did it! I'm excited for the opportunity to get back on track again but I'm nervous about the road ahead. I have a car that I am surrending due to owing 8k when it's worth 4 and will not pass state inspection without 2k in repairs (which I obviously don't have). I brought up a concern of mine to my attorney. I know I have to get approved through the trustee in order to acquire new debt (such as a car which is what I need). now my concern is surrending the car I have now and not being able to get approved through a lender for a new one. they said it shouldn't be a problem getting financed but from what I read on here it's more difficult than it seems. I really don't want to pay 2k in cash for a car at a buy here pay here dealership that won't last me the 3 years that I have to pay the trustee. I would like a nice reliable vehicle that will take me to work and back (a 50 mile round trip from home to work). has anyone had success with financing in an open chapter 13? also if you started rebuilding during a chapter 13 please let me know what you did! (with trustee approval of course

[Anonymous]

Congrats on taking that hard frist step.  My personal experience, I'm glad I requested to do the CH13.  While it was a weight every month to make that monthly trustee payment, it also made me become more responsible...knowing I needed to do things the smart way because I had to go through the trustee for things like a car or getting furniture on payment.  Since I had moved back home shortly before filing, I had nothing except my clothes and a few personal effect.  My trustee allowed me to do rent-to-own places (yeah, way over paid, but they reported on my CR's).  My trustee advised me to do this to help starting rebuilding my credit early with a strong warning to no go crazy.  I only got needed, modest items.  My truck (paid off before the CH13) was nearing 200K miles.  I was fortunate to have a very accessible trustee, who gave good advice.  My truck broke down (transmission issue and radiator) which I did the work myself, but the parts were going to make me short on having my monthly trustee payment so I did reach out to the trustee for advice.  He deferred my monthly payment so I could make the repairs.  He advised me to start looking for another vehicle (to get a less used vehicle and again, to help start rebuilding my credit) and directed me to a local dealer that he worked with (they had some sort of agreement, he would almost always approve deals with them as long as they stuck to the agreed interest rate cap).  I asked if I could look at other options for financing and he said he would have to approve it (I had to submit a request to look in to financing), but advised that most lenders wouldn't want to work with me, charge me a high interest rate, or would want me to be at least a year in the CH13.  I ended up financing with my local bank, but my parents co-signed for me at a greatly reduced interest as the one my trustee.  I know everyone's situation and experience vary, but that was my experience.  I would suggest seeing if your trustee has dealerships/financing that he trusts and works with/recommends.

[Anonymous]

thanks so much for the advice! I really hope I have a trustee that is like yours. I've heard horror stories about trustees making life hell. let's hope I don't have one of those!

[Anonymous]

You've already found one of the greatest tools ever...this site.  I didn't find this place until my last year of CH13.  I was very luck to have a great trustee...it was my lawyer that made things bad.  I wasn't educated enough and went with the only lawyer in my small town.  Had I know better, I would have taken a drive to get a better one.

[Anonymous]

also I make 4K a month and the attorney got my payment down to 250 a month. that definitely doesn't take away all of my exposable income but hey, if that payment gets approved I'm not complaining

[Anonymous]

When I went to my 341 meeting, I had a monthly payment in mind that I could live with.  The trustee actually went $100 less because he "had seen enough cases" to know what he was comfortable with.

[1Rebuilding]

Good luck!  I can tell you it was not easy for me and I had a couple tough years at the begining.  A large percentage of people never finish their CH13s.

[Anonymous]

Has anyone every filed a joint chapter 13? Just filed a couple of weeks ago and really not sure what to expect.