Filing Chapter 13 - Couple of Questions

[CH13INFL]

My wife and I are meeting with our attorney this Friday to finalize our filing chapter 13. We are in Florida.

I have a couple of questions I am looking for some advice on. I know our attorney can answer, but I figured I would see what information I could get from this forum.

First, please excuse me if I dont use the correct legal terms

OK, question #1: I am looking for clarification on whether or not our boat loan can be 'crammed' down in a chap 13 BK? We purchased the boat back in May 2005. The loan balance is around $22,000 and current book value is around $15,000.

Is it possible for this loan to be 'crammed' down? Will we be responsible for any balance at the end of the BK or will it all be paid off during the BK period?

Question #2: My wife's car was just repossed (we volutarily let it go) and received the letter today informing us of their intent to sell. My wife received $$ from a family member to purchase a used car which we did this past weekend (we paid cash and own the car outright). My question is: We won't be forced to sell this car if we file chapter 13? What are any problems/questions we may get from the court for purchasing this car? It is my wife's main transportation. I have my own vehicle which is financed and current and we are keeping.

Thanks in advance for any help!


CH13INFL

[justbroke]

OK, question #1: I am looking for clarification on whether or not our boat loan can be 'crammed' down in a chap 13 BK? We purchased the boat back in May 2005. The loan balance is around $22,000 and current book value is around $15,000.

Is it possible for this loan to be 'crammed' down? Will we be responsible for any balance at the end of the BK or will it all be paid off during the BK period?

yes, if you're going to pay it off during teh life of your plan. You can also bump the interest rate down to the Till Rate. The Till Rate is probably about 4-5% right now!

Question #2: My wife's car was just repossed (we volutarily let it go) and received the letter today informing us of their intent to sell. My wife received $$ from a family member to purchase a used car which we did this past weekend (we paid cash and own the car outright). My question is: We won't be forced to sell this car if we file chapter 13? What are any problems/questions we may get from the court for purchasing this car? It is my wife's main transportation. I have my own vehicle which is financed and current and we are keeping.

You need to check out your exemptions! This may have been bad. Florida vehicle exemption is $1,000. There are some other wildcard exemptions and maybe unused homstead exemption, but you may have an issue.

They won't make you sell it, but you may have to ensure that you contribute at least the non-exempt value of that vehicle to your unsecured creditors.

[CH13INFL]

Thanks for info... the car is worth around $6000 so exempt I am assuming would be $5000.

You need to check out your exemptions! This may have been bad. Florida vehicle exemption is $1,000. There are some other wildcard exemptions and maybe unused homstead exemption, but you may have an issue.

They won't make you sell it, but you may have to ensure that you contribute at least the non-exempt value of that vehicle to your unsecured creditors.