High Car Payment in Chapter 13

[zeezee]

Hmmm...that's interesting. Well I happen to drive a Lexus and my payments are $707 and my lawyer didn't bat an eye. The issue he says is going to be with the Nissan Sentra that I'm paying for my son (21). I signed for it for him when he started school a couple of years ago and now he's not in school anymore but is only making $7.50 an hour and can barely afford his rent with room mates. I pay the insurance and the note. I told my lawyer that he "may" be able to give $100 a month towards the note but I wouldn't count on it.
My lawyer said that the trustee would certainly take issue with that vehicle. Go figure.

[justbroke]

They always take issue with 2 cars in a single Debtor home. That's just the facts. But again... somethings do get by the Trustee so it's difficult to say with specificity for every Bankruptcy District, what the outcome would be.

[holding on]

So Ford, Lexus, Hugo, regardless of the make let's say the payment is 700. Judge, Trustee say no way that's allowed. what do they make you do? sell the car? Force you to give the car back to lender who has a lein via car loan? if its your only car what are you going to drive then? Very interesting.

[zeezee]

Well since my car is a little over 2 years old and I owe about $23.5 on it my lawyer is going to include it in my bk. I would imagine that after spreading that out over 60 months ($391) that will take it below the allowed amount for me.

[justbroke]

So Ford, Lexus, Hugo, regardless of the make let's say the payment is 700. Judge, Trustee say no way that's allowed. what do they make you do? sell the car? Force you to give the car back to lender who has a lein via car loan? if its your only car what are you going to drive then? Very interesting.

You can sell the car of pay the difference into the plan so that the plan is in "good faith".

Yes the good faith argument is the Trustee's trump card. They pull that out when you argue the facts. The Trustee and the Court doesn't really care about you (generally) and I've read cases where the Judge concluded that a certain ruling was "harsh" but the reality of the law.

But then again, some Trustees are nice and will work with you. It just depends on the District and the Trustee how they view certain things. Your mileage definitely varies by District!