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  1. #1

    Default Trading A Vehicle That's In Chapter 13

    Is it possible to trade in a vehicle that I currently have in a Chapter 13 case?

  2. #2
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    Default Re: Trading A Vehicle That's In Chapter 13

    You mean, and get a new loan? Clear it with the trustee.

  3. #3

    Default Re: Trading A Vehicle That's In Chapter 13

    Yes, I'd like to trade my pickup in for a smaller, cheaper vehicle. Will it have to still be included in the payments to the trustee or can I just have the car company pay off my truck and not have the new car included in my bankruptcy case?

  4. #4
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    Default Re: Trading A Vehicle That's In Chapter 13

    You want to get a new loan. You need to clear it with the trustee.

  5. #5
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    Default Re: Trading A Vehicle That's In Chapter 13

    Quote Quoting Mr. Knowitall
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    You want to get a new loan. You need to clear it with the trustee.
    So, the extra money can be used to pay your creditors.

  6. #6

    Default Re: Trading A Vehicle That's In Chapter 13

    Extra money! I was under the assumption that if I traded the vehicle that I have in Chapter 13, if the difference of the new vehicle was lesser than the traded vehicle, it would then just lower my bankruptcy payments. Could I just release the vehicle to the bank and have my payments lowered? And then get another vehicle?

  7. #7
    Join Date
    Mar 2005
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    Default Re: Trading A Vehicle That's In Chapter 13

    You mean, stop making your court-ordered payments and let the bank repo your vehicle?

  8. #8

    Default Re: Trading A Vehicle That's In Chapter 13

    Ok, let me post what I'm trying to ask in question form:

    1. If I trade in the vehicle that I have in Chapter 13 and the new vehicle costs less than the trade, will it lower my monthly payment to the bankruptcy trustee?

    2. Or will the payment for the new vehicle not be included in my bankruptcy payment? And have my bankruptcy payments lowered substantially because I'll no longer have a vehicle included in the payment?

  9. #9
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    Sep 2005
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    Default Re: Trading A Vehicle That's In Chapter 13

    If you get your trustee's approval, get a new car loan and pay off the loan that is part of your Chapter 13 plan, your Chapter 13 payment should be reduced but you will also have a car payment. If you have more discretionary income as a result, your trustee may wish to apply part or all of that to your other debts.

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