Not Sure.....

[Michigan42]

Yeah, I kinda wanted it before I file, but if I have to wait, so be it. Btw, is there a site I can got to figure out what my payment might (inc all allowable expenses) be in the state of MI?

[rrockinggramma]

http://www.mieb.uscourts.gov/

the means test and IRS data is on the bottom in the corner

I was able to purchase a vehicle using Drive Financial (awful interest) but I "slow payed" and then included them in my chapter 13. The trustee reduced their interest to 6 percent. Not telling you to do this but this is what I did.

[Michigan42]

Wow, you did this after you filed? Whats slow pay?

[liz417]

http://www.mieb.uscourts.gov/

the means test and IRS data is on the bottom in the corner

I was able to purchase a vehicle using Drive Financial (awful interest) but I "slow payed" and then included them in my chapter 13. The trustee reduced their interest to 6 percent. Not telling you to do this but this is what I did.

Yeah, I want to know what "slow paid" is too....

[Michigan42]

rgramma, did u purchase the car before filing? Mt atty says go ahead & get the car, but may or may not be able to toss into the bk, something about good faith? Btw, no one would touch a car loan for me except Drive. The int rate is 17% & my payment is approx $365.00 on the 1st car I chose. So, needless to say I'm looking for a cheaper car to bring the payment down. I'm not too sure how much my bk payments will be & dont want the new car eating up a large chunk of $$$.

[Michigan42]

Hello again,

I wanted to give a quick update & of course, ask more questions! My 341 hearing was quick & easy & conf hearing I did not have to attend. My payment went up a little but not too horrible. I've made 4 payments so far & have managed our new budget fairly well. Now, the car I financed just before the BK is seemingly getting too hard to pay for. I'm wondering how I would go about getting another (cheaper) vehicle If I were to somehow get out of this one? Also, I believe I mentioned that I work for an auto dealership in my OP. Well, as you all know this is the wrong kind of biz to be in right now & I feel I may get laid-off in the coming months. If this does happen, how does that effect a BK? I know the unemployment benefits that I would receive in my state slightly exceed my BK payment. Could I use this $$ to make my BK payment while looking or retraining for a new job? Thanks!

[optimistic1]

You might be able to find new financing, but most likely you will just want to hang on to your car and deal with the payment, as your financing post confirmation will likely be very high.

If you get laid off, make sure you tell your attorney or trustee right after, so you can file a motion to suspend your payments for 2-3 months. Then use your unemployment money to help you live and find another job. Or you could go the route you suggested and pay your Ch.13 plan with the money, but I dont like that idea.

[Michigan42]

Yeah, I figured that & my financing/payment is high now (17%). I was thinking if I could get rid of the car, I'd buy a beater cash. For now, I'll just keep driving it & manage the payment.

Thanks for the advice on the possible layoff scenario. I wasnt aware of the motion to suspend the payments. That would certainly help if need be. I just want to be prepared if the worst happens.

[optimistic1]

If you plan on buying a beater, then go for it, although if by doing that you increase your disposable income, you would most likely end up paying all that money you saved, back to the trustee, unless you can show you need that extra money to pay for allowable expenses. The motion to suspend the payments will not be free, you will need to pay the attorney their fee to file everything and such, they might just roll the fee into the plan though if youre lucky. My attorney charges a flat fee of $650 for preparation and filing for moratorium of payments, of course the fee will vary from lawyer to lawyer.

[rrockinggramma]

amend your plan and put the car in it or have your attorney look at 722. My trustee only paid 6 percent interest on the principal owed. You won't get financed by anyone now that you are in your chapter 13. If you put the car in the plan, it may change your payments some but the trustee will pay it down before any other unsecured creditors get paid.

wait until you lose your job to start worrying about what to do next. I hope your dealership wasn't one of those pinched by our now socialized government run car company

the trustee only cares if the payments get made so unemployment works just fine if you can handle it. and Michigan doesn't suspend any payments. They may modify the plan but no suspensions.

[keezeed]

In Eastern District, you are allowed to take out up to 1000.00 in debt without trustee approval. So about a year after filing, I took out a few small credit cards to rebuild my credit.

What does this mean exactly?

When you file CH13 does it 'freeze' your accounts with your creditors? I would assume so because of late fees burying people who stop paying, but does this mean that if you were very frugal and saved some money during a CH13 that you could pay off creditors without going through your trustee?

Thanks!

[woeisme]

we had out plan amended from $1100/month to $400 per month after my husband lost his job. Our attorney didn't charge us anything for it. If you are caught up on all your mortgage arrears, you may be able to convert to a CH 7 if you lose your job, that will cost extra in filing fees and probably attorney fees, but another option I didn't see mentioned here.

[rrockinggramma]

contact with your creditors in a chapter 13 is forbidden. Why would you want to rock the boat anyway.

No I took out the bottom feeder cards like First Premier and Cor Trust and Credit One. They are low limit, high fee cards. But paid on time for about 1 year while in a chapter 13 reestablishes history while everything else is wiped out. Then I graduated to a secured B of A card and it took off from there.

Creditors pimped once probably won't grant credit again and generally any card included in a chapter 13 is instantly closed once you file.

I had to give up my Cap One card although HSBC gave me a second chance.

and a slow pay is paying after the due date but before the 30 day late would becomes an issue so I would pay like 45 days, just before it could be considered 2 months behind and thereby bring on repo action. And to the OP, now that you have filed, your car company would have to file a motion to lift the stay to take action on your vehicle. So now that you have filed, miss a payment and talk to your attorney to amend your plan and get it included.

[keezeed]

But paying them is not considered contact ?

I'm just trying to figure out how you paid creditors outside your plan while in CH13 because it's something I want to do I think.

[UpsideDownMI]

When you were approved by Drive for you auto loan did you have to get rid of your other car?

I have 1 car loan that will be paid in full in 6 months and another lease that is due in a year. I would like to get rid of them now as I hear it is easier to get a loan before I file. I don't want to be stuck without reliable transportation because I could not get a loan approved while in my plan and I also will not have enough money to save for two cars in that short of a time frame.

Thanks!