car loan DURING chapter 13

[Anonymous]

hello everyone. I will be filing a chapter 13 bk on 03/02/16. I'm surrending my vehicle in the bk since I owe 5k more than what it's worth and I'm paying 17%to navy fed. anyways I'm going to absolutely need a vehicle right away. with my financial situation I don't have money to buy a car in cash. I want to know who has had success in getting a new vehicle during a chapter 13 and for how much? I make 48k a year.

also another side thought... do you receive chapter 13 discharge papers only after you have completed the payment plan? what kind of paperwork do you receive? because I talked to a dealership and they said once I receive discharge paperwork and if I'm correct that won't be for 3 years (my payment plan) thanks everyone!

[mynameainttracy]

You do not get a discharge until you successfully complete the payment plan.

If you want to finance a car while you are in a CH13 you will have to get permission from the trustee first.

If you put your current car in your CH13 plan the interest would have a cap on it and be much less than 17%. Although you are underwater, what shape is the car in and could you potentially keep it, is that even an option?  We were in a lease prior to filing and we knew that we would be in the middle of our payment plan when the lease ended. Rather than deal with the issues associated , we traded the lease on a new car prior to filing and then included the new car in our payment plan.

[Anonymous]

thanks for responding! my attorney did inform me I would have to go through the trustee here. good thing is he said usually here in Hampton, VA the trustees want you to start working on your credit asap. the car I currently have is not in too good of shape. it won't pass a state inspection without 2k in repairs and the car is only worth 4K and I owe 8. I looked into getting a new car before filing but no one wants to work with me with my current credit and debt to income, especially since I told them I won't be trading in my current car because of the negative equity I would be adding onto a new car.

[mynameainttracy]

You said the car was with NFCU, is that the only thing you are burning with them or do you have cards? I ask because if possible I would avoid burning them.

We were also in a negative equity situation and we traded anyway, rolling it in. Our credit was bad and I think we ended up with an 11% or so interest rate and by including it in our plan it was knocked down to like 6%.

Our trustee also allowed immediate rebuilding. It was a big help to be able to start earlier than discharge.

[Anonymous]

with navy federal I have the car which I owe 8k, I have a credit card for 3k, and a personal loan for 3k. I really do not want to burn NFCU because they have been really good to me but it's looking like I don't have a choice

[mynameainttracy]

I do understand that. We had to burn USAA and NFCU has been really good to us post filing. Best of luck.

As far as discharge papers, you will get an official discharge notice from the courts. It is a 1 page document that shows your case number, names on filing and says DISCHARGE OF DEBTOR AFTER COMPLETION OF CHAPTER 13 PLAN.

[Anonymous]

okay so I would get that discharge paperwork before my payment plan is up just saying that it will be discharged as soon as long as I go through with the payment plan?

[Anonymous]

thank you again for the info

[mynameainttracy]

Nope, after you complete the plan. I think we got our discharge about 6 weeks after our last payment.

[Anonymous]

do you know any lenders that work with chapter 13 to get an auto loan? does cap1?