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    Car loan

    Hello,

    this is question might be stupid but if I'm filing chapter 13 and I'm current on my home and car payment. Can my mortgage or car loan bank object the plan for any reason? I will be paying both my mortgage and car payment outside chapter 13

    #2
    The only way they can "object" to the plan is if something materially changes in the plan. Even then, a plan can be approved over the objection of not only the creditors but also the Trustee.

    Paying outside the plan can save you money, but please be aware that if you are late paying, then you can have post-petition issues that complicate things. You did mention that you are on-time with those payments today so it shouldn't be a problem for you.

    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Sorry but what do you mean materially changes in the plan? Can you give examples? Yes I'm current and will remain this way. The only missed payments I have is on credit cards

      Comment


        #4
        A perfect example of a "material" change that will bring an objection? If, in your plan, you change the APR for your mortgage lender to a different number (not in their favor) and they will object that you "modified their rights" when you are unable to modify the rights of a creditor holding a mortgage on your primary residence. Or you attempt to change any of the terms of that mortgage, such as changing the balance of the mortgage (not in their favor).

        The same would occur if you did this for a car, although most Districts allow you to change the loan rate to the lower of the actual APR rate of the Till Rate (if you had the car for more than 910 days, or never refinanced it).

        The reason is super simple yet easy to miss. The Chapter 13 Plan of Reorganization is a new contract and both creditor and debtor are bound by a confirmed Chapter 13 Plan.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment


          #5
          Thanks very clear. I noticed on my car loan with trust bank there is an abbreviation section and one of the condition to break the contract is if I filed bankruptcy. So why they care if I files if I will still pay it the same way?

          Comment


            #6
            Originally posted by moses911 View Post
            Thanks very clear. I noticed on my car loan with trust bank there is an abbreviation section and one of the condition to break the contract is if I filed bankruptcy. So why they care if I files if I will still pay it the same way?
            I don't know about the "abbreviation section" regarding bankruptcy but it's my understanding that any so-called "ipso facto", or "termination on bankruptcy" clause, is unenforceable in bankruptcy.

            So I would not worry about that. In bankruptcy, you are in the driver's seat (pun intended).
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment


              #7
              Thanks so much for your prompt answers

              Comment

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