3 car payments left

[sdcouple]

We have not filed yet, probably in the next couple of months. My question: is there an advantage or dis-advantage of making the last 3 payments on the automobiles prior to filing, or should we include them in the plan ?

thanks

[lrprn]

My question: is there an advantage or dis-advantage of making the last 3 payments on the automobiles prior to filing, or should we include them in the plan ?

If you intend to keep the cars after filing, then you should ask your lawyer if it makes sense to skip a car payment or two before filing and roll that into your plan when you file.

You need to be cautious about doing this, because most car lenders will send out the repo man after two missed payments. Given the current economic woes across the country, some may be faster or slower than this. Your attorney can share what to expect with your auto lenders.

Just curious....you don't have to answer if you don't want to....but why do you want to skip the car payments?

[sdcouple]

Thanks for the reply. We were just curious if we should have them paid off prior to filing or have them in the plan, no big reason one way or the other, other than right now they have full coverage due to the loan, if we could get them paid off prior to filing, then down the road we could reduce to liability and save some $$$.

Thanks.

[lrprn]

We were just curious if we should have them paid off prior to filing or have them in the plan, ...

Do *NOT* pay off your cars before filing without talking with the attorney you will retain first! Most states allow don't allow much of an exemption for cars. Typically if you intend to keep the cars after filing, then you want to keep as much loan as possible to reduce the amount of equity in each car that you have to protect.

...if we could get them paid off prior to filing, then down the road we could reduce to liability and save some $$$.

Do nothing about paying down anything before discussing it with your lawyer first. You could end up having to pay your trustee the amount that your state auto exemptions can't protect to keep the cars. That's not going to save you $$$ - it could actually *cost* you $$$.