Possible plan - any suggestions?

[BigJohn]

We plan on filing this week. Lawyer has all of our info and payment.

What I want to do is:
1. House appraised by a certified appraiser. House is worth less then the first mortgage. We want to strip the 2nd mortgage.
2. Wife's car is 6 months old, my truck is 9 months old. We want to pay the vehicles in the plan (lawyer suggested). We want to pay her car minus the service contracts, etc. as secured and the whistles and bells as unsecured at a rate of hopefully 5 1/2 % or less on the secured. The truck is used for business so the 910 rule does not apply. I feel the truck is worth about $18,000. We want to pay that amount at about 5 1/2%.
3. We bought furniture almost 2 1/2 years ago (in February it will be 2 1/2 years - 910 days). I assume the furniture is not worth much and hopefully will be considered unsecured debt. When we will get confirmed, the confirmation will be 910 plus days from purchase. I checed my State's UCC filings and their was no filing for the furniture.
4. We plan keeping our store. Value is $3000.00. I expect to pay for the value of the store divide by the number of months in the plan.
5. We expect to pay the trustee 10% or less.
6. The only thing I am behind in is about $4000.00 in employee withholding tax which I understand can be paid in the plan at 0% interest.



Any suggestions or advice will be welcomed.

[justbroke]

I don't see anything wrong with that plan. I didn't want to pick it apart piece by piece, but overall it is sound.

I don't understand the value of the store? Is it that it doesn't fit any exemption or wildcard exemption? Is it the inventory, furnishings, or something else causing its value to be $3K?

You should be able to get the 5.5% on the vehicles as the WSJ Prime Rate is at 3.25% now (and 4% for last month). You generally apply Till to that which is 1 - 3% over the WSJ Prime Lending Rate... so you look good. (I will interject, however, that some Districts set the Till rate each quarter so you can't just calculate it yourself.)

Other than that, probably expect the lender to bother you on Valuing your work vehicle. Just means you'll probably have to prove it once you file your Motion to Value Security.

Best wishes on a confirmable plan!

[BigJohn]

JustBroke said "I don't understand the value of the store? Is it that it doesn't fit any exemption or wildcard exemption? Is it the inventory, furnishings, or something else causing its value to be $3K?"


We rent the store from our landlord and part of our income is derived from renting rooms out to other businesses. The $3000 figure is what I would pay for the inventory if I was to buy it. As for displays, etc., they are worth virtually nothing.


I don't think there is any exemption for the store so I assume I will have to pay thru the bankruptcy the value of the store's inventory.