Considering Ch 13

[AndyChristie]

Hi all, first off, great site, thanks for all the info.

My question is, do you get to decide what all is included in ch13?

For example, we have like 3 credit cards with 3 diff companies. Then we have 2 vehicles and 1 credit card that are with a credit union ( all of which are cross collateralled, ugh ).

One car has already been repo'd, and the CU says we have to pay the deficency on the repo'd car, and the credit card if we want to keep our other vehicle, otherwise theyll repo it. Theyve already confiscated any $ in our accounts ( 2 of them ) and closed one. Very fustrating.

I would like to include all this into the ch13, and keep the only vehicle we have and have them "crunch down" the loan or whatever it is.

With this tho, we have a boat that we finance and are current on and i do not want it to be affected by the ch13. Will this be a problem? Weve had it for 3 years and are very upside down on it, so it isnt collatteral that can be used to pay the debts.

Any suggestions on both the boat, and keeping the vehicle we have left would be greatly appreciated.

Andy!

[indebt00]

We have had 2 consults this week and we had NO choice in what was included. We are in AZ. and all credit cards will be included. they pull a credit report. so...unlesss you have a zero balance...its going in the plan.

house - we are keeping - pays outside plan

car #1 - purchased - keeping but must go inside the plan

car # 2 - leased - keeping - outside the plan since its a lease

have 1st, 2nd, 3rd....are lienstripping the 3rd.

we don't own any bikes or boats, etc.

We are losing timeshare....trustees see it as a luxury. period.

[EricaCallaha]

You don't get to pick and choose what you put in. Pretty much if you owe it, list it and will be put in.

Find a good attorney. That is the best way to start this whole process.

Good luck.

[Reddrocket07]

From my understanding, you must include everything and then reaffirm on secure debt if you wish to keep it.

[EricaCallaha]

This is true for most things like your house or car. Some trustees will see the extra as a luxury item and will tell you that you have to give it up or pay the amount that it is worth toward your plan.

[lrprn]

...we have a boat that we finance and are current on and i do not want it to be affected by the ch13. Will this be a problem? Weve had it for 3 years and are very upside down on it, so it isnt collatteral that can be used to pay the debts.

Any suggestions on both the boat, and keeping the vehicle we have left would be greatly appreciated.

Since the boat is upside down, your trustee isn't going to be interested in it because it can't be sold for a profit. It will have to be listed as an asset when you file though. Also you need to be able to protect its market value with your exemptions - is that possible in your state? If you can protect the boat with your exemptions, expect this creditor to file a claim.

One question to ask yourself in a cold, emotionless way....why are you determined to keep a boat and pay a lot more for it than it's worth? That money could go a long way to a more solid financial start once your Ch 13 is over.

Credit unions are particularly unforgiving and difficult to work with in Ch 13. Most lawyers will advise you to open a new checking account somewhere else before filing to nullify the cross-collateralization possibilities.

Whether the cars can be 'crammed down' to their actual market value depends on when they were purchased. Only cars purchased more than 910 days before filing can be crammed down. Leased cars can't be crammed down - in fact, you need to plan ahead for the fact that the dealership may not renew the lease once it's up during your Ch 13.

Your lawyer should have a good grasp of what to expect in your specific case given the creditors you will be dealing with.

[BankruptinNC]

One question to ask yourself in a cold, emotionless way....why are you determined to keep a boat and pay a lot more for it than it's worth? That money could go a long way to a more solid financial start once your Ch 13 is over.

I completely agree. The whole purpose of the ch. 13 is to help you reorganize and get a fresh start. And one thing you have to ask yourself about this boat is, "Do we really need it and is it worth the cost?" Good luck...

[AndyChristie]

thanks to all for the help, sincerely appreciate it.

We have an appt with a lawyer on Monday to discuss options.

As for the boat, well, its the one thing my wife and i thouroughly enjoy together. Maybe we over paid for it, but its a good boat, and we have no desire to upgrade. It will support us, and in the event we have kids, them as well. We think it is worth keeping, but we will definaetly consider the alternative.

Weve had the vehicle we wish to keep for 3 years now i think, so hopefully we can cram down on that one. Guess well find out on Monday.

Thanks again to all!!