Pmts in plan/out of plan/ who really decides ??

[klandsb]

Ok. So I retained an attorney on Thursday and we went over a bunch of stuff but I am still confused on one thing...Well, maybe more but for now my obsession is this:
I am keeping my house & my car...Pmts are up to date..
So I asked my attorney if I should continue to make the pmts and he said NO they will be in with the plan....
I am confused about who makes the decision whether they are in the plan or not ????????
I will be in a 5 yr plan w/my income/expenses figures... So my car w/be paid off in 2 yrs ... If I include in the plan do they spread that out to 5 yrs and then I am paying on a car until its 10 yrs old ?? Or can "I" choose to not include it and pay for the next 2 yrs until its paid off ????
Also, as I said before these are paid up to date... If I file in the middle of August and my house pmt is due 10-1-09 how long is it before they would make a pmt. I dont want to get behind then have to make it up at the end of the plan..
OMG... 5 yrs seems like an eternity to pay but I have creditors/lawyers/ calling my house/ or mailing me stuff every single day...Of course, I cant wait till they call now and I can say call my attorney but I am never here when they call...GO FIGURE

[lrprn]

I am keeping my house & my car...Pmts are up to date. So I asked my attorney if I should continue to make the pmts and he said NO they will be in with the plan.... I am confused about who makes the decision whether they are in the plan or not ????????

There's no consistency across the country about this.

A few local Ch 13 trustees mandate that all secured asset payments have to paid by the trustee within the plan. Luckily most local bk trustees allow the filer and his/her lawyer to choose which works best for them.

All mortgage and car payment arrears do have to paid through the plan by the trustee.

If I include in the plan do they spread that out to 5 yrs and then I am paying on a car until its 10 yrs old ?? Or can "I" choose to not include it and pay for the next 2 yrs until its paid off ????

Yes, your lawyer can include the car payments as a part of your plan if that makes sense for you. It will make your monthly payments lower too.

But having your trustee make your car payments also allows the trustee to take his/her admin fee % for the car payments too.

Your lawyer can help you sort out what is going to work best for your situation.

If I file in the middle of August and my house pmt is due 10-1-09 how long is it before they would make a pmt. I dont want to get behind then have to make it up at the end of the plan..

If your plan is set up for your trustee to make your mortgage payments, then your mortgage lender has to wait for the trustee to send the payments. You are under the protection of the bk court - the mortgage company has no choice but to take payments from the trustee whenever the trustee sends them out. (And it won't be on the mortgage company's due date - that date has no meaning any longer *if* your mortgage is being paid inside your plan by the trustee. Several months might go by after you file before your trustee starts paying out secured asset payments.

Of course, if *you* are making your mortgage and car payments yourself outside your plan, then you MUST continue to make on-time payments to the lenders. If you don't, then your lender can petition the court to lift your automatic stay and take the asset.

[13inIN]

Trustee/court district has a preference. Cleanest way for them to be sure they have adequate oversight is for them to handle the payments. For instance, you say your car has 2 yrs left. Would you rather your chapter 13 payment go up by the same amount as your car payment once the note is complete? Or spread it out along the way by letting them re-allocate the total over the 60 months and keep it in the plan. It sounds as if your lawyer is telling you that your trustee isn't asleep at the wheel and knows that the note will be complete prior to plan completion.

[klandsb]

When I asked about the car pmt my attorney said we can get the interest rate lowered on that to 6% at which point I said its already lower than 6% and that was the end of that discussion......I guess it will all get figured out its just that there are just so many things to think about that I just want it over ....
Tell me how much I have to pay and get on with it .........
Since I just retained him this week we have lots of paperwork to go over ...He said the paralegal w/be calling me to go over my expenses... Is that normal that the paralegal does that part ???????
I am so paranoid that I didnt pick a good law office...I went to 4 different lawyers before settleling on this one... Sorry for rambling

[rrockinggramma]

I would try and keep the mortgage payment outside of the plan if you can unless it is demanded by the trustee to put it in. Especially since you are NOT behind on it.

[ccfriend]

I pay both my 1st and 2nd mortgage outside of the plan and also my car payment. My lawyer is the one that suggested I keep it outside because of the trustee needing to take his percent. My car will be paid off next June.

[StartingOver08]

There is nothing wrong with the paralegal doing the figures and expenses to start and to have the attorney review before it is filed. In fact, many of the better attorney's have excellent paralegals and that is what helps make the attorney better. The attorney can concentrate on the legal aspects of the filing and the paralegal on the 'processing' aspects. Learn to love your paralegal!