if you are under a chapter 13 bankruptcy and your car which is listed in the bankruptcy gets totaled by the insurance company how long does it take for you to get approval to substitute collateral and be able to purchase another car?
There is only one person in the world who can answer you, and it will not be anyone online (it will be your Chapter 13 lawyer). The answer depends on (1) which judge is assigned the case, (2) which trustee is assigned the case, (3) how fast your lawyer submits a motion/request, and (4) the language and details of your plan and your budget. Now the bad news: Judges in the Northern District of Georgia (and I believe you're in that) usually will not grant a motion to substitute collateral unless the creditor has agreed to take a new car title. Many if not most lenders refuse andif they do and say they want the insurance proceeds, you're stuck, and they can often be done with your case. For this reason, such motions are not commonly granted. Ask your lawyer if you may be better off letting them get he insurance money and then drop them from your plan. That lets you (possibly) file a motion to incur debt to purchase a replacement vehicle, and your lawyer will know if this is viable. No matter what youdo, it will take a while, so make at least short term alternate transportation plans.
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I agree with Mr. Ashman's answer. There are a lot of moving parts to this situation, a because if the car it totaled out and you receive nothing as a result, you will need permission of the Court to incur new debt to purchase a car. You must talk to your attorney and have them file the appropriate motion with the Court. This is a common problem, and it should be approved, but it will take some time, so I completely agree that you need to make arrangements for temporary transportation.
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In most cases here in the Northern Circuit, the judge will want you to pay off the car with the insurance proceeds, then file a motion to incur new debt and buy a replacement, using the money you were using to pay on the note for the wrecked car. Contact your attorney immediately to make an action plan.
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