auto cram down question

[amjo30]

Within the bankruptcy petition, how is the cram down put in the petition? Should the secured value(market value) be put under Secured claims and the remaining balance of the loan be listed under unsecured claims? The reason I am asking is because my loan balance is $21,000 and the car is valued at $13,000. Also, should the $21,000 amount be split on Schedule D(creditors holding secure claim)? My attorney is nice but I am beginning to think his paralegal doesn't know what he is doing. Also, they have had the paperwork for over a week and I was told today that Friday the attorneys will review the papers again. You would think someone would tell me. I am getting a little worried because my petition was filed to put automatic stay on my creditors; however, the creditor matrix was not attached and I checked Pacer and saw that the judge issued an order for the document within 5 days which is Friday. I am wondering if my attorney even knows this. When I called, the paralegal didn't have a clue. I thought attorneys check Pacer or receive notification through email. I am not sure what to do at this point. any suggestions.

[justbroke]

A cramdown is not put into your petition. However, what value you believe the vehicle to be as of the date of the petition, is put on Schedule D for your secured property (if it's secured by a loan).

Your Chapter 13 Plan is where you explicitly claim that you are cramming down the value. They actually call this "Valuation" and not cramming down. Valuation allows you to set (declare) the current market value and propose, via the plan, to pay the value over the life of the plan. You may also be required to file a Motion to Value Collateral in order to get the property crammed down. I say this because some Districts you can motion to value as part of the Plan; in others, you need to file a motion to value, as a contested matters, separately; and, still, in others, you need to file an Adversary Proceeding (complaint) in order to do this. Procedure for your District is what you follow.

Also, attorneys receive notification via e-mail. However, you're right, they are busy and they may have missed it. I hope they get it in by Friday, or your case may be dismissed.

Seems like you filed an "emergency petition". I hope your lawyer knows that your Plan is due as well. I'm assuming they know all this.

[amjo30]

I don't think my lawyer realized the plan and creditor matrix is due with the petition. I think this is why he is meeting with the head attorney Friday. I will fax a copy of the order to the office. Hopefully, this will help. I don't have another $300 to file another petition. I just found so many errors on the paperwork and he missed listing a few creditors. Also, I have another question. If the account is placed with a collection agency, do you have to still list the original unsecured creditor. I was told only the collection agency needs to be listed but collection agencies sometimes sell your debt to other agencies. I would think the original creditor would need to be listed on the matrix.

[justbroke]

Always include all creditors that you know of. If it is a duplicate or disputed, your attorney should clearly show that on the Schedules!!!

Example, say you have Card A from American Express, and they sent it to Collector A. You should list American Express as the creditor. You should also list Collector A as a creditor and MARK it as Duplicate (or Disputed). Great attorneys usually indicate somewhere that it is an AMEX collection account.

This is just to make the claims policing process (the process in which you look through creditor claims) a little easier. It also puts the creditors on notice that their debt is claimed to be duplicative or disputed.

The reason is that not all collection agencies (CA) are actual owners of the debt. Sometimes a CA is just a third party collector for the original creditor. Therefore, it's best to list everyone and just mark the ones you think are duplicative as Duplicate, and those that you don't understand or agree with the balance as Disputed!!!

[StartingOver08]

Get with your attorney today - that paperwork is due tomorrow and your attorney was remiss in not filing the entire petition! Don't let him risk your BK!