new to the forum hello

[mb1966]

hey guys...
im new to the board and this is my first post. I had a question that hopefully can be answered. I am just about to start my chapter 13 next week. I have talked to 2 different attorneys and that is where my question comes from....
Dont know if it matters, but i live in texas. When i went to the first one, she asked me about all my unsecured and my car loan and gave me a pymt plan right off the bat. Basically it was $395 for 3 yrs. That was her fee, car pymt and other debt rolled into one.
When i went to the second lawyer, he told me once i filled out the questionare to determine my income and living expenses, he would be able to figure my pymt.
My question is...is there a certain percentage that is used to figure on the auto loan and how much its worth? Meaning, did the first att go ahead and use these figures and give me the pymt amount and the second att will do the same?
Hope this makes even the slightest bit of sense

[optimistic1]

Is your car loan more than 2.5 years away from the last time you signed for the loan? If there is, then you would then look up the KBB Private Party Value of the vehicle at fair condition, they then cram down the loan so that the bank is only getting paid what it is worth at a interest rate of about 6-9%.

The second attorney would most likely do the same thing.

[justbroke]

Is your car loan more than 2.5 years away from the last time you signed for the loan?.

Just an FYI. The 2.5 years (910 days) is from the time that you received a purchase money loan to acquire a vehicle. This means that refinancing destroys that "purchase money" status, so any car refinanced can be crammed down. This is so long as you didn't refinance through the same lender.

The so-called 910-day rule only applies to loans that were directly used to purchase a car. Loans used to refinance a car, are not protected by the anti-cramdown provisions in the Bankruptcy Code.

(I will concede that this is partially dependent on how your State's non-bankruptcy laws define purchase money and what refinancing does to "purchase money".)

My question is...is there a certain percentage that is used to figure on the auto loan and how much its worth? Meaning, did the first att go ahead and use these figures and give me the pymt amount and the second att will do the same?

There are several factors, and optimistic began to explain a tool within the Chapter 13 process known as the cramdown. Also, some attorneys want you to fill out forms first, so they can enter them. Others will enter them quickly into their system to determine your estimated payment.

This is just an initial guess, and the lawyer needs to look into several more factors to determine your real payment.

[optimistic1]

Just an FYI. The 2.5 years (910 days) is from the time that you received a purchase money loan to acquire a vehicle. This means that refinancing destroys that "purchase money" status, so any car refinanced can be crammed down. This is so long as you didn't refinance through the same lender.

The so-called 910-day rule only applies to loans that were directly used to purchase a car. Loans used to refinance a car, are not protected by the anti-cramdown provisions in the Bankruptcy Code.

(I will concede that this is partially dependent on how your State's non-bankruptcy laws define purchase money and what refinancing does to "purchase money".)

Here in my state (Arizona), my attorney stated, that since my loan was refinanced, that it is reset and the 910 starts all over again, he said he had a prior case with this issue. For me it wont matter anyway, because my refi for the car will be at 910 days in like 30 days from now, so I will still get the cram. He is either wrong, or the trustee is wrong, or the lenders are wrong, or its just the way it goes out here in AZ.

[justbroke]

Here in my state (Arizona), my attorney stated, that since my loan was refinanced, that it is reset and the 910 starts all over again, he said he had a prior case with this issue. For me it wont matter anyway, because my refi for the car will be at 910 days in like 30 days from now, so I will still get the cram. He is either wrong, or the trustee is wrong, or the lenders are wrong, or its just the way it goes out here in AZ.

And just the opposite in Florida, and hence the difference between underlying State non-bankruptcy law. In this State, a refinance destroys the purchase money characteristic of the loan.. unless it was refinanced with the same company. I crammed down a 365-day old "refinanced" vehicle.

[optimistic1]

I should consider myself lucky that I didnt go through with a refinance about a year ago, I would be stuck. I kind of wish there was just a federal law for everything, and that the states couldn't just make up their own.

[mb1966]

no, i havent refin the car. And its an 05 so its in the 2.5 year rule. I owe like 13,5 on it but the book is like 9500, so i guess i will be getting a break on the pymt huh? LOL
This is a great site and i have so many questions, but i will do some more reading before i bombard you guys with them

[justbroke]

I should consider myself lucky that I didnt go through with a refinance about a year ago, I would be stuck. I kind of wish there was just a federal law for everything, and that the states couldn't just make up their own.

If I had a nickel for everytime I said or thought that... I could pay back all my unsecured creditors 100% (yeah, all $334,000 worth) and have money left over.

LOL!

[mb1966]

i was going to get rid of the car for a new one so i would be set for the years to come from the BK, but think i will just keep it. It has 77k on it but im thinking my pymt will be alot higher on a new one and it doesnt make much sense if im trying to free up money.

Another question i have is...i got my tax refund a week or so ago and it is in my bank. I havent paid my att yet but he knows about it. Im guessing i should just take that money out before i sign any papers correct? Its about 3k

[StartingOver08]

Check your exemptions for your state. Use the refund before you file. You are allowed to pay the attorney with your refund and necessary living expenses. There is usually a limit as to how much cash you are allowed to keep (that is why you want to check your exemptions). Any overage goes to the Trustee.

[mb1966]

do you think my att would tell me ? He gave me a questionare type thing to fill out to figure all my living expenses to see where my BK payment will be, and i was planning on taking that to him tomorrow

[EricaCallaha]

Make sure you ask your attorney about how much money you can have in the bank the day that you file. We figured out that we could only have about $150-200 in our checking and savings on the day that we filed. You can't just pull the cash and stash at home and then redeposit. It will be required to be listed as cash on hand, which is an asset. Also, ask your attorney about your refund. Depending on your state you may be required to turn it over to the trustee, unless you can figure out a way to exempt it or use it for living expenses before you file.

[mb1966]

actually, the refund is supposed to be used to buy my son another car. He wrecked his a few weeks ago and im going to get him something else to drive

[mb1966]

also another thing....im having to change banks. The bank i use now and where my money is im having to close out because that is where one of my unsecured laons are at. I have already opened another acc at another bank. So will they want to see my new bank records (which shows $50) or the bank ive been using but am closing?

[justbroke]

also another thing....im having to change banks. The bank i use now and where my money is im having to close out because that is where one of my unsecured laons are at. I have already opened another acc at another bank. So will they want to see my new bank records (which shows $50) or the bank ive been using but am closing?

All statements as of day of filing. They will let you know how many months to go back.