Does your BK pmt. automatically go up when you pay off a lease or other pmt?

[bigreddog]

We are 8 mths. into a 60 mth. plan. We have a Honda lease that is due to be finished in two months. If we were not to replace it, would that payment be added to what we have to pay the trustee now? Also, our plan allowed me to keep my John Deere tractor. Deere agreed (or didn't object) to the amount and original 5.9% and I've spoken with their BK department. But at the current Trustee approved pmt. IT will be paid off in 10 mths. Will that $400 mth. be added on to the monthly BK pmt.? Lastly, same with my Bobcat Excavator. We're paying it outside of the plan and only owe two more years. Once it's paid for, that free's up $575 mth.

Our lawyer kept saying don't worry about it, because we'd be refinancing out of the BK in a year and buying out our plan. Our scores are in high 600's with no lates at all. And we have good income. Any thoughts?

[bmcmull]

I finished a lease through VW credit 1 year ago and have never heard anything sinnce. I dont think it comes back to you. JUst do not say anything about it.

[arkienurse]

We are 8 mths. into a 60 mth. plan. We have a Honda lease that is due to be finished in two months. If we were not to replace it, would that payment be added to what we have to pay the trustee now? Also, our plan allowed me to keep my John Deere tractor. Deere agreed (or didn't object) to the amount and original 5.9% and I've spoken with their BK department. But at the current Trustee approved pmt. IT will be paid off in 10 mths. Will that $400 mth. be added on to the monthly BK pmt.?

Are these paid inside your plan or outside? If they are paid inside the plan, then the money being paid on them will simply go to the next creditor in line for payment.

Lastly, same with my Bobcat Excavator. We're paying it outside of the plan and only owe two more years. Once it's paid for, that free's up $575 mth.

Our lawyer kept saying don't worry about it, because we'd be refinancing out of the BK in a year and buying out our plan. Our scores are in high 600's with no lates at all. And we have good income. Any thoughts?

Are you in a 100% payback plan? If not I would wait until at least 36 months in before refinancing out of the bk. Otherwise you will have to pay back 100% of the debt.

[bigreddog]

I just don't understand why our attorney said we could buy out in a yr. I checked BBB & he came highly recommended by many others including our acct. of 10 yrs. I checked out the numbers and we're paying 1.1% of unsecured creditors over the 5 yrs. He said he liked our case because many of his client's who are self-employed are too far gone to save their business by the time they come to him. Ours is doing great (on an averaged out over an entire yr. period). If 100% payback would mean all of the creditors rather than 100% of the balance of the plan, that'll NEVER happen. As I said earlier, our unsecured, non priority debt was $140,000. And NO ONE came to the 341. Am I missing something here???????

[wayne-o]

bigred....you do understand that the unsecureds dont necessarily have to come to the 341 meeting. They can still file a claim without coming. The ones that show up usually have something to object to, like a cash advance or recent large purchases

[bigreddog]

We owed MBNA $25,000. They got bought by Bank of America. And Bank of America just transferred the account to some collection agency? Is something funny going on? So we've been making payments for 9 mths. and just because we've received no notices or other letters from the court means they can still object? My wife and I are wondering how long we can live like this and might as well go chapter 7 and get it over with.

[MajorMike]

Yes, they have 60 days from the date of your 341 to file a complaint objecting to discharge ( it just happened to us ) and NOBODY came to the 341 AND we are already confirmed!!
You need to get on the PACER system and check your case. Everything will be in there! Also, you can't buy out a BK if you're not at 100% payback. You're in it for the full 5 years...
Also, many collection agencies will buy your original debt from your creditors. It happened to us with several of our cards. The original creditor will take the write off, the collection agency will hope to get some sort of payment out of your plan. At 1.1%, it would be pretty tiny though.

[lrprn]

Bigreddog, keep in mind that Ch 13 practices vary widely across the country. Just because one Ch 13 filer posts their experience here doesn't mean the same thing will happen to you.

Always take the good and bad experiences that Ch 13 filers share in the forums with a healthy dose of skepticism until you can talk with your own attorney to see if that same thing is going to happen in your case.