I have recently started a chapter 13 in new jersey but the car which is a part of my 13 chapter thirteen was totaled in an accident and I know I will not be able to get another car loan nor do I have available money to purchase one. I spoke with the bank and they informed that I could get a substitution through the courts but I wanted to know if that were true?
Yes, that is true. However, the bank might possibly object, so it is not necessarily a sure thing. Ultimately a judge would decide.
In NJ, I have never heard of a Sub of Collateral, but it is worked into the Motion to Obtain Credit. You ask the Court for permission to enter into a Financing Agreement and as part of the Motion you amend the schedules to reflect the change in collateral
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