"Till" Modification

[caj0524]

If I change the interest & subsequent monthly payment, would that need to be paid "inside" the plan?

[lrprn]

If I change the interest & subsequent monthly payment, would that need to be paid "inside" the plan?

Whether you pay your adjusted mortgage payment or your trustee does depends on the customs of your local court. Chances are if you are paying your mortgage payment now, that will continue after the mortgage is modified (if you can get a modification to finish line - good luck - even with their trustee's prior permission to attempt it, many filers are struggling with this, especially when the mortgage is tied up in a Ch 13). This is an "ask your lawyer" question.

If modifying your mortgage significantly decreases your monthly mortgage payment and your expenses haven't increased accordingly, you may have to amend your 13 plan to reflect that. This is another "ask your lawyer" question.

[HHM]

Let's back up, what the heck are we even talking about here?

Change interest and monthly payment on what?

[caj0524]

My cars...

I do not have a mortgage...

Both of my cars are 910 cars. I can't cram-down the value, but I'm hoping to modify the interest.

Car 1: 12.65%
Car 2: 29.90% (yes, you read that right)

If I can get those down to the Till Rate, I will.

I'd rather not pay the trustee the 10% on those loans... can I modify down to the till rate but pay them outside the plan?

[justbroke]

If you're going to be modifying the rights of the auto lenders, more than likely, you'll need to pay through the Trustee. This just makes it easier and you won't run into the problem where they will not accept your payments. The Trustee has more clout in this area.

It would be interesting to know for sure what the typical Trustee does in this case.

[HHM]

Anytime you modify a secured debt, it must be paid IN THE PLAN through the Trustee.