910 day rule! cramdown Q's

[jmonez]

i owe aprox 28k on my truck, and its only worth aprox 12k wholesale blue book, I am trying to include this auto in the plan, but I am just shy of 910 days. I am at aprox 890, will the trustee alow this as a cramdown, or is it always a absolute no if its been financed under 910 days? also if i am not able to cram down, does it make sense to keep it and pay in the plan or to give it up? I do not have another vehicle and would like to keep this one, if it makes sense. what happens if I include without cram down, must i still pay the full balance? thanks

[optimistic1]

Absolute no go if it is not past 910 days.

[HHM]

910 day rule is absolute. Any reason you could not have waited another 20 days to file.

Sorry to say, you made this bed...you know the rest

[BigJohn]

i owe aprox 28k on my truck, and its only worth aprox 12k wholesale blue book, I am trying to include this auto in the plan, but I am just shy of 910 days. I am at aprox 890, will the trustee alow this as a cramdown, or is it always a absolute no if its been financed under 910 days? also if i am not able to cram down, does it make sense to keep it and pay in the plan or to give it up? I do not have another vehicle and would like to keep this one, if it makes sense. what happens if I include without cram down, must i still pay the full balance? thanks

What are you basing the start date of the 910 period? The day you signed the contract or the date of the first payment?

[walkthaplank]

Can you wait a month to file?

My lawyer said that he had one slip through that wasn't 910 days, both he and his paralegal missed it. Nobody objected to it and it went through without a second look. He also said that TRYING to do something like that is very risky and could result in getting the whole BK dismissed. He said had it been kicked back, he would have been scrambling to fix the mistake.

[EricaCallaha]

Wait the 20 extra days to file (plus a few more to be safe), if you haven't already filed. It is absolute and they will not budge. It would be totally worth it in the end.

Good luck.

[jmonez]

o.k i am basing on the original contrct signed date? also i am unable to wait becuase they lender is calling me everyday threating a repo order!! So if I am unable to cram down, doesn't still make sense to pay it throught the plan, would it be any less? or do you recomend giving it back? the only problem is its my only trasportation, and obviously i have no funds available or decent credit to purchase anohter vehicle. Well, we will see what happens I guess! thanks for your advice!!

[justbroke]

First, it's the date you signed the contract. If you have a copy of the original contract (sales contract), then you can prove the date easily.

Second, try to wait the 20 days if you're that close. Also, remember that 2008 was a leap year, so there's an extra day.

If you have already filed, then your lawyer will file it as normal, with you pay8ing the entire balance during the plan. Because of the massive negative equity, I don't encourage you to pay that truck in plan anyhow, you may consider surrendering it.

How many days are you late on payment? Since the lender is only threatening repossession, that means no repo order yet.

[DUMBAGAIN]

for the cram down, do they look at the retail value of the car or the trade in value?

[justbroke]

for the cram down, do they look at the retail value of the car or the trade in value?

This seems to vary by District. Some will use the retail value, and others the private party value. Even more confusing, some want you to use specifically NADA or Kelley Blue Book.

Personally, I took an average of Kelley and Edmunds.COM private party value based on the condition of my vehicles. I also deducted for warn tires, a small unrepaired dent, and the service light being on with my vehicle at the time of filing.