Auto objection

[workinghard]

Well everything was going fine and dandy until my lawyer called yesterday....we filed our ' 06 truck with 0% finance on the original contract for 72 months and owed approx 66 payments. In the 13 however, my lawyer gave them higher payments (to pay off in 60 months) PLUS 8.25% interest...well, they want to raise the interest to prime + points saying it's a "risk" .... This is making our trustee payment go up over $100! I just don't see how the court could allow this. Isn't the 13 is supposed to "help" reorganize yet the finance company gets to take advantage and charge outrageous interest? How is this a risk if the payments are being condensed already from 66 to 60...would be more a risk now that they are making our plan unaffordable and might not be able to afford the trustee payment! Then either way they lose because if we give the vehicle back then they sell it dirt cheap and only get pennies on the deficiency. Or our case gets dismissed and they repo and same thing! My lawyer asked for a continuance but I dunno....anyone run into this sorta thing?

[aa06a47]

You can keep the payment outside of the chapter 13 if you chose (if your behind on payments, that might be an issue). Secured debt is suppose to go by the original contract terms, including interest rates. I am not sure why your attorney wants to make you pay more? Bizaar.

[CindyLou]

Yep, keep it outside the plan and keep your 0%!!!!! Your attorney will have to ask for special permission and site the interest rate as the reason on the form. My brother's was approved outside of the plan.

[workinghard]

Thanks for the advice. I am asking my attorney our options regarding the objection and asking to pay outside the plan. Keeping my fingers crossed.

Well I heard back from the lawyer, said that the argument has not been successful before and prime + 3% has been ruled to be "fair" by the courts. It still don't make sense to me because I was at 0%.