Expert: Terry Leeders - 5/1/2008

Question
I filed CH 13 July 2007 by myself my husband did not file with me but since we are in a Community Property state (Texas) I guess that really doesn't matter.  We decided to keep both vehicles.  I am really thinking about surrendering my most expensive vehicle and trying to get something a little cheaper since my husband and I both need a car.  I tried one lender but they want a down payment.  My question is if I were to surrender the most expensive vehicle would the trustee refund any of payments that I have made towards this vehicle to help me secure another one?

Answer
Sorry, no. any funds paid to the trustee are paid to the creditor, and will not be returned.  If you surrender the car, the lender will auction it off, and file an amended plan with the court so they can receive the deficiency balance owed.  You may want to consider trading it in, or possibly converting to Chapter 7 if possible. You would need to bring a motion if you want to acquire new debt though , however.