Preparing for my Chapter 13

[BigJohn]

Vicmost, if your appraisal comes in below your first mortgage, which I think it will, you should consider getting a new car or two.

[BigJohn]

As for your mother-in-law, if you get stopped with her in your car, and they find out she overstayed, they can seize your car and arrest you. The good news is this rarely happens. My wife is oriental also and we get stopped by the border patrol every once in a while. I have a DOD (Department of Defense) stiker on my window. I roll my window down about half way, when they see the sticker, they motion us on. They never ask for IDs. I got the sticker at our local Military surplus store.

[vicmost]

I will do!

Thanks!

[vicmost]

Vicmost, if your appraisal comes in below your first mortgage, which I think it will, you should consider getting a new car or two.

Why? I only have minimal equity in the one car ($2500)....

[vicmost]

As for your mother-in-law, if you get stopped with her in your car, and they find out she overstayed, they can seize your car and arrest you. The good news is this rarely happens. My wife is oriental also and we get stopped by the border patrol every once in a while. I have a DOD (Department of Defense) stiker on my window. I roll my window down about half way, when they see the sticker, they motion us on. They never ask for IDs. I got the sticker at our local Military surplus store.

It could happen I guess.. It just seams very unlikely ...I've never seen the border patrol unless I'm near San Diego area and I rarely go there.

Good tip though!

[BigJohn]

Why? I only have minimal equity in the one car ($2500)....

A new car, espeially if paid in the plan, will pay the car off during the bankruptcy while paying less to unseured debt.

[vicmost]

A new car, espeially if paid in the plan, will pay the car off during the bankruptcy while paying less to unseured debt.

I thought there had to be a certain amount of time since purchase to be able to include it in your plan...(270 days??) I will research it a bit more...I get your point though...Thanks

[vicmost]

A new car, espeially if paid in the plan, will pay the car off during the bankruptcy while paying less to unseured debt.

Wouldn't I be doing the same thing by purchasing tools for my job? I need tools more than I need a new car.

[BigJohn]

I would consider doing both. Get the tools first, then the car.

[woeisme]

The time limit on the car purchase is just if you want to "cram down" it's value, kind of like the lien stripping you want to do. This would only be a good idea if you decide to go Ch 13, then it will lower your disposable income, basically that income goes towards something you want (your car) rather than to an unsecured creditor.

[vicmost]

The time limit on the car purchase is just if you want to "cram down" it's value, kind of like the lien stripping you want to do. This would only be a good idea if you decide to go Ch 13, then it will lower your disposable income, basically that income goes towards something you want (your car) rather than to an unsecured creditor.

Got it- The time limit is for the "cram down" on the vehicle..

And the purchase of a vehicle would direct my disposable income towards a car and not to unsecured creditors...

What about the interest on secured debts like cars and tools?
Does the intertest stop if it is included in your payment plan?

Example- I purchase $10k in tools (at 10%)
6 months from now I file chapter 13.
Do I pay the principal only over the next 3 to five years or do I pay principal plus interest?....
Am I wrong inestimating an additonal %10 for the Trustee?

Thanks!

[woeisme]

Trustees % varies by district, it might not be as high as 10% (I think that is the max). My trustee only charges 2.7%, for example. Whether the trutee/judge modifies the terms of the secured loan's interest can also vary. I don't know much about that since my only secured was my house, which by law the judge can't modify, but I have heard of other debts, like car loans, etc being modified with respect to interest rates. Sometimes they lower the interest rates, sometime completely eliminate them... it all seems to be a crapshoot with your particular district rules being what determines these things, which is why I think the BK process is so unfair, there's so much latitude and variations in interpretation of the law.