Objection To Confirmation Ch 13

[knotholeone]

Help Help Help.. 341 went great two weeks ago. Got mail yesterday HSBC auto has Objection To Confirmation regarding two auto already in the plan. They object to the cram down amount. What will happen now? I have made first payment and employer is set up for the next 60 months. Any answers would be helpful. Thanks.

[HHM]

You have 3 options.

1. Amend your plan and adjust the amount of cram down to the value HSBC wants.
2. Call them and negotiate the cram down amount, then amend your plan accordingly.
3. Reply to the objection, and let the judge make decision.

Sounds like it is simply a valuation dispute.

[justbroke]

I had such an issue with one of two vehicles that I was cramming down. They were both financed through the HSBC and the creditor's attorney filed an objection to confirmation. it was no problem though.

First, I attended the non-evidentiary hearing so that I could see their position. They were adamant that purchasing a car for my wife was not necessary for my "reorganization" and suggested that she pay for it. The hearing was continued to confirmation.

Second, I called HSBC's attorney and discussed it with him. He was pretty much going to fight it all the way, so I asked if I could just pay 8% and the full value, and he said fine!

Third, I amended my Plan to indicate a Rate of 8% and the full value of the note.

Confirmed!

Automobile creditors are the most picky when it comes to plan confirmations and many are willing to "fight" over valuation. In the end, you need to weigh whether fighting over the cramdown amount is really worth it.

[CH33 Paralegal]

They probably think that you valued the car too low.

read the objection to see what they are saying. Do a very detailed NADA valuation on your car, and detail it down to every different variable your car could be...the suffix, the engine size, the odometer, the options, all of it.

You may just have to propose more gets paid to them. Also, if there is by any chance a co-signor on either of the cars, you won't be able to cram that down, unless that codebtor is also on your BK.