Results 1 to 6 of 6
  1. #1
    Join Date
    Aug 2009
    Posts
    7

    Default Selling Vehicle Being Paid Outside Chapter 13 Plan

    My question involves bankruptcy in the state of: Texas

    My husband and I are currently about a year into a 5 year Ch. 13 plan.

    We are paying two car payments on cars OUTSIDE the plan.

    He wants to sell one of the cars and buy a cheaper one that will not have a payment.

    Can we sell one of the cars as it's being paid outside the plan?

    Will there be any problem with getting title to the car?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Selling Vehicle Being Paid Outside Ch. 13 Plan

    What exactly do you mean? Do you mean that you took out loans for two cars while on the Chapter 13 plan without clearing it with the trustee?

  3. #3
    Join Date
    Aug 2009
    Posts
    7

    Default Re: Selling Vehicle Being Paid Outside Ch. 13 Plan

    NO. They were included in our Ch. 13 plan, but we are paying them OUTSIDE the plan. We would NEVER get a loan without clearing it with the trustee. We are terrified of doing anything for fear of having the BK dismissed.

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Selling Vehicle Being Paid Outside Ch. 13 Plan

    Sorry for needing to clear that up. The typical question we get in here is from a person who has obtained loans outside of the plan.

    As Chapter 13 plans often take as long as five years, it's anything but unusual to have to trade in a car during the course of the bankruptcy. My concern in your case would be that the trustee might view a trade-in that eliminates a car payment as increasing your discretionary income.

  5. #5
    Join Date
    Aug 2009
    Posts
    7

    Default Re: Selling Vehicle Being Paid Outside Chapter 13 Plan

    That's ok.

    We sort of thought that too, except that my husband lost his job about 3 months ago and just now got a new one for about 1/3 of his former salary, so we would probably come out even in the wash. That's why we are trying to eliminate a payment, so we can buy groceries!

    Thanks for your input.

  6. #6
    Join Date
    Oct 2009
    Posts
    1

    Default Re: Selling Vehicle Being Paid Outside Chapter 13 Plan

    Thanks for this site very helpful.

    1. Sponsored Links
       

Similar Threads

  1. Chapter 13: Paying Off a Chapter 13 Plan Early, 100% Repayment Plan
    By mjsantos in forum Bankruptcy Law
    Replies: 4
    Last Post: 06-04-2011, 07:59 PM
  2. Chapter 13: If Chapter 13 Plan is Paid Early Can the Case Be Dismissed
    By weneedadvice in forum Bankruptcy Law
    Replies: 1
    Last Post: 03-18-2011, 08:34 AM
  3. Repossession: Selling a Vehicle Before It is Paid For
    By heavyhauler_joe in forum Cars and Dealerships
    Replies: 3
    Last Post: 02-01-2010, 07:20 AM
  4. Chapter 13: Mortgage Company Paid Real Estate Taxes Included in Chapter 13 Plan
    By pesaindon in forum Bankruptcy Law
    Replies: 2
    Last Post: 02-12-2009, 09:11 PM
  5. Chapter 13: Selling A Vehicle During Chapter 13 Bankrupcty
    By bustercat15 in forum Bankruptcy Law
    Replies: 1
    Last Post: 01-10-2008, 02:01 PM
 
 
Sponsored Links

Legal Help, Information and Resources