First "official" meeting with lawyer....got some promising news!

[sunshineMN]

Have you ever wanted to jump across the desk and give your lawyer a HUGE hug???

We met with our lawyer yesterday to officially start our Ch 13 filing process. We had several questions on things that came up since our initial consultation. He was VERY good about answering ALL questions....even my dumb ones. (LOL)

After that, we got more into some more specifics and after some calculations....the lawyer tells us that he's fairly confident he can get us in a 36 month plan rather than a 60 month plan. (Though I'm still going to prepare myself for a 60 just in case....better prepare for the worst and get the best than the other way around.)

So we left his office feeling VERY good....and with a brighter glimmer of hope of getting our financial lives out of the red and back into the black.

I only walked away with one question that I'd like to post to all of you.

The background is.....
My car is on it's last leg and we need to trade it in and get a newer on that will last us through our plan. We would obviously have to finance the car as we'd only have trade in value plus about $1000 to put down. Our lawyer said getting this is a good thing to do...as long as we're not going out and getting a BMW, Audi, etc. He told us to do it ASAP so we could get one payment on our loan made so that the records show we are "current" on payments....so the finance company doesn't take the car.

My question is....
Has anyone had experience with financing a car right before filing for ch 13???
I know we can finance ...though it might be at a bit higher % rate than we'd like...but we can do it. I'm more worried about making only ONE payment prior to filing. Would we be better off making 2 or 3 payments??? I just don't want a new vehicle (that I NEED) taken away and be left with no car!

Your thoughts and feed back are soooo much appreciated!!

[contemplate]

Wow! Congrats! Sorry that I do not have any answers (too new to the idea of BK.) Your post has made me curious though, how do they determine that one can have a 36 month chapter 13 plan? Is it based on income, debt, income to debt ratio, monthly payment amount, percent payback? Three years sounds sooo much shorter than five!

[sunshineMN]

The reason why our lawyer thinks he can get us into a 36 mo plan rather than a 60 mo plan is due to my husbands child support for his two boys. Even though they do not live with us...we are supporting them. The lawyer said that he's tried this route in the past and hasn't had many objections.

If anyone does question this.....we do actually support the kids above and beyond the court mandated child support. We help out with buying clothes, school supplies, health care costs, etc. And, they do spend a period of time in our house so we do have to supply food...etc. for them when they are here.

Basically the way I understand it is that he'd be adding to the # in our household....even though they aren't with us 100% of the time. So instead of using the median income for us two....we are allowed to use the income for a 4 person household....which puts us at a lower income base. (I'm sure a more seasoned poster here can correct me if I'm not saying this correctly...I'm still not real familiar with the ins and outs of all of the details)

What it boils down to for me is that if our lawyer can pull off the 36 mo deal...GREAT!!! If not, we are still prepared for the full 60 mo. (But I'm quietly saying my prayers for the 36 mo deal!)

[sofarsogood2]

Yes!! Love my attorney!! Looked long and hard till I found her. She came up witha totally different strategy for us that none of the others did. I could have kissed her at our 1st meeting! The process can be long and scary, having confidence in your attorney helps. So far, so good for us. Good Luck!

[HakunaMatata]

I don't have experience with C13; however, I purchased a car two months prior to filing C7 and this didn't present an issue.

On a different note: I asked my attorney to adopt me!

Fingers crossed for a quick and easy 36 months!

[wolfkingen]

I did the same thing, purchased a vehicle right before filing. There were no objections from anyone for doing this.

Chapter 13 - MN. Confirmation on Jan 7th.

[klandsb]

"NO" I would not hug my attorney .... In fact I am ready to call the attorneys office and ask to speak to the head honchos to see if maybe they can assign me someone else.... I have been calling for 2 weeks ( 7 times so far) leaving messages to call me back.... NO REPLIES... UGHHHHHHH.... its so frustrating... Thank god I am filed already and had my 341.... We had words at the 341 therefore I think he really doesnt find it neccesary to return my calls. I could be wrong but before the 341 he returned my calls. My main gripe to him was that he was suppose to be working for me and getting me the best plan possible. Which I stated to him "that was not happening "...He just seemed to be ho hum about everything..
Sorry just venting.. Not sure what to do ??

Yes, if I were you I would get a new car before you file. 36 or 60 mths doesnt really matter if you have an old car that needs replaced... Unexpected bills like car repairs can really mess up your budget when your in a Chapter 13... I have been trying so hard to put money aside for emergencies but havent been able to yet. This will only be my 4th mth into my plan but I am so affraid something is going to bread down on me. I am very lucky though because I have family that if I asked in an extreme emergency would help me out...

[sunshineMN]

Just to clearify a little....
I'm confident there won't be any objections about getting a new(er) vehicle.
I got a little nervous when the lawyer said that we'd have to wait until after we've made one payment on our loan so that it appears that we are current on our payments...otherwise the finance company could take the car back.

Does this make sense?

[lrprn]

Just to clearify a little....
I'm confident there won't be any objections about getting a new(er) vehicle.
I got a little nervous when the lawyer said that we'd have to wait until after we've made one payment on our loan so that it appears that we are current on our payments...otherwise the finance company could take the car back.
Does this make sense?

The key here is whether your car lender would have grounds to state you knew you couldn't afford the car when you filed. By making a payment first, that decreases that possibility.

Ask your lawyer whether he/she thinks you should reaffirm the new loan or not. That's important to determine as well. Good luck - hope everything continues to work out in your favor!

[sunshineMN]

Thanks lrprn......I was thinking about reaffirming late last night. Just wasn't sure if you could reaffirm in a 13...thought that was only for a 7.

I spent most of the day yesterday looking around on-line for cars...and found a few options that we are going to look at this week. For what we are looking at...I'm guessing our car payment would be less than $300/mo. I know we can afford to do this so reaffirming I think would solve any problems.

Fingers crossed that more things go better than the nightmare scenarios that keep running through my head. The support here really helps me to step back...breathe...and remember that things are going to be OK. This forum is much needed support. A HUGE thank you to all that post!!!!!

[MSbklawyer]

Thanks lrprn......I was thinking about reaffirming late last night. Just wasn't sure if you could reaffirm in a 13...thought that was only for a 7.

That is correct. You DON'T reaffirm in a 13. The confirmed plan specifying that the creditor retains the lien under 1325(a)(5)(b)(i) serves the purpose of a reaffirmation.