Chapter 13 over 7 to keep asset

[jessica0607]

Hi,

I have a 2005 Ford Explorer - kbb private party has a good condition value of $10,500 - what would be the payments on a chapter 13 on this? I do qualify for a chapter 7, but won't have the full cash to redeem and the credit will be too shot to buy this vehicle without paying high interest (if at all). Would the trustee on a 13 just want say $200 per month for 60 months? More? Less? ALso I heard a BK attorney charges more to deal with a 13 for this reason, and the fling fee of $2,000 for a chapter 7 increases to $3,000 for a chapter 13.

Sinc,Jeff

[Tbornetun]

Do you have a loan on the vehicle? If so, what is the balance of the loan?

[jessica0607]

No balance - title in hand but I need cash for living expenses since I lost my job.

[UpsideDownMI]

Your monthly payment in a chapter 13 will be what ever your disposable income is (income - expense). Since your car is paid off you would have pay your unsecured creditors at least $10,500 (minus any exemptions) over the length of your plan, as that is what they would receive in a chapter 7.

[DeadManCrawling]

Don't forget the trustee's percentage. They get paid to find assets and administer the plan.

[lrprn]

I have a 2005 Ford Explorer - kbb private party has a good condition value of $10,500 - what would be the payments on a chapter 13 on this?

If you qualify to file Ch 13, then the answer depends on if you pay your car payment directly to the lender yourself 'outside' the plan or if it's paid by your trustee through your monthly Ch 13 payments. Either way, your current car payment will be used to calculate this expense on your required Means Test and Schedules.

Just because you want to file Ch 13 doesn't mean you can. Your Means Test and Schedules must show enough disposable income to support a Ch 13 plan. If you qualify for Ch 7, that's going to be tough to do.

I do qualify for a chapter 7, but won't have the full cash to redeem and the credit will be too shot to buy this vehicle without paying high interest (if at all). Would the trustee on a 13 just want say $200 per month for 60 months? More? Less?

Do you own this car outright? Or do you still have a loan you are paying for the car?

ALso I heard a BK attorney charges more to deal with a 13 for this reason, and the fling fee of $2,000 for a chapter 7 increases to $3,000 for a chapter 13.

Ch 13s cost more because they can be a lot more complicated and have a lot more gray areas than Ch 7. Depending on the state you live in, $3K is a very reasonable fee to pay a lawyer to help you file Ch 13.

Is the car the only reason you want to file Ch 13?