What do you wish you knew before filing ch 13 ? planning questions

[OceanDreams]

We have been down the ch 13 path in the past, we were successful in getting through and getting it discharged. Was a 5 year plan. Has been 13 years though and life has changed. what do you wish you had known or done before?
If you could offer any advice to a newb (but not really a newb to the process) what would you offer? thanks for your time

[OceanDreams]

We have been down the ch 13 path in the past, we were successful in getting through and getting it discharged. Was a 5 year plan. Has been 13 years though and life has changed. what do you wish you had known or done before?
If you could offer any advice to a newb (but not really a newb to the process) what would you offer? thanks for your time

I can’t figure out how to edit but I meant to include the fact we are considering filing 13 now and looking for insight on that….

[shipo]

The one piece of advice I'd offer to a new Chapter 13 filer is to buy a new car, complete with a 5-year warranty and maintenance plan before filing.

[OceanDreams]

I have read quite a few posts about the new car. How much time needs to be from buying the car to filing? Does it matter? Will a new car be included in or outside the BK? Last time our cars were in it and we kept them. Our current is 7 yrs old and 25k miles but the loan is over the worth a bit at this point so I figured it would be included with possibly a cram down ?
would you trade in the old car toward the new car or keep both?
I see that you can make payments online now that is better. Are court appearances in person or zoom? (I have read posts about both but not sure with being past the Covid shutdown if was back in person.

[justbroke]

I bought a new car two weeks before filing. Most of that was to make sure the car was titled and registered. I would never go into a five year Chapter 13 with a car that is no longer under warranty. But, in your situation, you can typically cram down the vehicle's "claim" to the actual market value and discharge the difference. I did that and saved $13K since I was underwater from a negative equity trade.

A new car will be included, but usually a debtor will not be able to cram down the value or change the interest rate.

The Zoom/WebEx appearances for the 341 Meeting were due to COVID. It will depend on whether the COVID protocols are still in place or there is a compelling reason to allow a debtor to attend the 341 Meeting via video conference.

[OceanDreams]

I bought a new car two weeks before filing. Most of that was to make sure the car was titled and registered. I would never go into a five year Chapter 13 with a car that is no longer under warranty. But, in your situation, you can typically cram down the vehicle's "claim" to the actual market value and discharge the difference. I did that and saved $13K since I was underwater from a negative equity trade.

A new car will be included, but usually a debtor will not be able to cram down the value or change the interest rate.

The Zoom/WebEx appearances for the 341 Meeting were due to COVID. It will depend on whether the COVID protocols are still in place or there is a compelling reason to allow a debtor to attend the 341 Meeting via video conference.

so could be buy a new car and keep the old car. go into BK...old car and new car both in bk payment? thanks

[shipo]

Can you make a case for needing two cars?

[justbroke]

I agree with shipo. Generally speaking, you will not be allowed to have two vehicles unless there are other dependents in the household that you can justify to have more than one vehicle. The court will not let a debtor substitute their desire to have two vehicles over the rights of the unsecured creditors to be pai

It is true that a Chapter 13 allows a debtor to keep all their property. The kicker is that you must be able to afford it and not do that to the disadvantage of the (unsecured) creditors. So, in a Chapter 13, it's possible to have two vehicles, and no dependents, if you somehow paid the value of that second vehicle and the payments to the Chapter 13 unsecured creditors over the life of the plan. I would say that the Chapter 13 Trustee would complain unless you were in a 100% plan or the value and payments of the vehicle were also given to the unsecured creditors. I think that's impossible in a plan that doesn't already pay 100% to the unsecured creditors. For the simple fact you must ask... from where does this money come from?

[OceanDreams]

Can you make a case for needing two cars?

No I don't think we need to cars. Only one of us works. We don't want 2 cars in the end....one is good. thanks for answering

[justbroke]

No I don't think we need to cars. Only one of us works. We don't want 2 cars in the end....one is good. thanks for answering

Having a household of two would allow you to have two cars. Ask your attorney, but it may be "strategic" to have two vehicles if you have a lot of disposable monthly income (DMI).

[OceanDreams]

Having a household of two would allow you to have two cars. Ask your attorney, but it may be "strategic" to have two vehicles if you have a lot of disposable monthly income (DMI).

Yes 👍

[BlkLabMom]

I'm 2.5 year into my Chapter 13

Wish I knew: Car (stuck with a 10 yr old Nissan Leaf for the next three years)
Best think I did: 401K max (if attorney thinks it will fly with the trustee and allowed in the plan)
Rebuild tip: Mission Lane Cash Back Visa (1% cash back, bankruptcy friendly, raises credit limit after 6 months of on time payments)

More on the 401K max... my attorney advised (and I followed it) to max my 401K contribution 4 months before we ended up filing. Trustee allowed it as part of the plan (not in a 100% plan) and I will finish my bankruptcy with $100K more in my 401K than if I hadn't. I do hear they aren't always allowing this now so your mile may vary (as with any Chapter 13 topic, trustees are all different)

Surprise: the biggest thing that surprised me was that my student loan company filed a claim, and part of my chapter 13 monthly payment gets distributed to them... this feels like such a huge win to me as well since this debt won't be discharged after the chapter 13 is completed and during covid, those payments were 100% going to principal. Yes please and thank you!