Secured Loans in Plan...

[caj0524]

I need to make a couple revisions to my plan, and at this point I can still do it in 36 months... if...

I am making my car payments inside the plan to take advantage of the interest rate reduction (Till). My question is.. if the car is being paid inside the plan, does it need to be paid-off by the end of the plan?

At the end of the plan I wrote something to the effect that any remaining balance on the car loan at the end of the 36 month plan would revert back to the original interest rate, and would be payable in 36 equal monthy payments of $xxx.xx.

Is something like that doable? Do I need to add more/different verbage?

Any thought would be greatly appreciated! Thanks and Happy Friday to all!

[hearr]

Depending upon the answer you get here from the pros, I may or may not be confused. I will be meeting with my attorney on Monday which should result in my filing just a few days after that. When My original calculation was done by his Debt Counselor, I was told that my auto would be handled inside the plan, but only it's true market value would end up being paid within my 60 month plan. That amounts to about a 4600.00 amount against a balance of about $11,000. My understanding is that after that, the auto would be paid off.

Ken

[caj0524]

My vehicle is a 910 vehicle, since it's only a year old. That means I need to pay the entire principal loan balance. I owe $34k, but only want to pay $23k of that over the 36 month plan.

[justbroke]

I am making my car payments inside the plan to take advantage of the interest rate reduction (Till). My question is.. if the car is being paid inside the plan, does it need to be paid-off by the end of the plan?

Yes. I haven't seen any plan to date that doesn't pay off vehicles within the plan life.

At the end of the plan I wrote something to the effect that any remaining balance on the car loan at the end of the 36 month plan would revert back to the original interest rate, and would be payable in 36 equal monthy payments of $xxx.xx.

Why would you do that?

Is something like that doable? Do I need to add more/different verbage?

Is this plan confirmed? If it's not, I don't know if the lender's attorney will let that language fly at all. You'll probably get an objection to confirmation.. unless they totally miss that.

Why are you not paying the car off in the plan life?

[caj0524]

The only way to pay it off during the plan life would be to go 5 years. I'm just looking for options to bring it down to 3 years.

The plan has not yet been confirmed. This specific plan has not even been submitted yet, as I am currently modifying it.

[justbroke]

The plan has not yet been confirmed. This specific plan has not even been submitted yet, as I am currently modifying it.

I don't see how you wouldn't get an objection to confirmation if you intend to treat the automobile lender as you write. They are amongst the toughest creditors out there. I'm not saying don't try. I just want you to be prepared for an objection and then having to change your strategy.

I would plan for the best (pun intended) and prepare for the worse.

[caj0524]

The trustee wants a step-plan since my alimony will be ending in 16 months. Makes sense from her stand-point. She wants the unsecured's to get something more than 0.5%.

Hee Hee I figured from months 17-42 I can increase my secured payments to eat up the excess, and have both cars paid off and my plan complete in 3 1/2years. We're under the median, so I don't have to go over 36 months.

You can bet you're a** I'll go to 42 months and pay off both cars.

Oh yeah... the unsecureds go from 0.5% to 0.8%. She can't say I didn't try...

Talk about your clean slate... no CC debt, no medical debt, no car payments, and best of all... no alimony!

I can't wait until Feb 2013!

[justbroke]

Sounds like a Plan!

Always, always, always pay off secured debt before paying anything to unsecured creditors! You're learning. You are definitely getting the hang of this.