Auto loan arrearages in Chapter 13?

[tkharvey]

Does anyone know if we are behind on car payments, does the arrearages just go into the plan or do we have to be caught up on the cars before we file? Any advice would be appreciated.

[crookedoak]

i believe it can differ with each plan.

I was 3 months behind on 2 vehicles when I filed. The attorney did a cram down, and the all payments were deducted from my pay to the trustee.

You can file while behind, why else would you file ?

[lrprn]

Does anyone know if we are behind on car payments, does the arrearages just go into the plan or do we have to be caught up on the cars before we file? Any advice would be appreciated.

You can file Ch 13 and be behind on car payments. The arrears are rolled into your 13 plan.

The real question to ask yourself is whether it's truly worth catching up on car payments or not to keep the current car(s). Is the car (or cars) worth less than what's left to pay on the loans? If they are worth significantly less, then discuss whether or not paying a ridiculous amount just to keep your current cars makes sense financially in the long run with your lawyer.

[tkharvey]

One of my vehicles is worth about 12K and I owe aroun 22K. The other I owe 5K and is worth 5K. My lawyer said I could cramdown the one to the 12K and include both cars in our plan. Yes, I want to keep both cars (one is my van, one is my daughters) but tired of paying the 600 a month on the van, especially if around 10K of it will be cramdowned. Then again, I don't want them to reposess before I file. Filing in July.
Thoughts?

[lrprn]

One of my vehicles is worth about 12K and I owe aroun 22K. The other I owe 5K and is worth 5K. My lawyer said I could cramdown the one to the 12K and include both cars in our plan.

Given that your 12K vehicle must have been purchased more than 910 days ago, since you can cram that value down to the car's true value, that makes it reasonable to keep it when you file. Your second car is at its market value, so it makes sense to keep that one as well.

Then again, I don't want them to reposess before I file. Filing in July.
Thoughts?

Most auto lenders will start serious repossession efforts after two missed car payments in a row.

Are you up to date now on both vehicle payments? Or if you are behind on payments for either vehicle now, when did you make the last payment for each?

[tkharvey]

Payments are due the 25th of each month. Haven't made a payment since March 25. Would it help to call the credit union and be upfront about our BK, or will they reposess anyway?