"till" rate?

[tiredintx]

I've done a search of the forums and can only find references to it. Can someone tell me exactly what it means.

I'm filing BK 13 in May/June. My lawyer told me to go buy a vehicle for 3 reasons, 1. mine is 6 years old and has 100k miles, 2. my daughter will be turning 16 and needs a vehicle (she'll get my old one) and 3. it will 'lower' my monthly payment into the bk.

I knew my interest rate would be enormous but then I saw reference to the till rate. Can someone tell me how that works.

Thanks!

[lrprn]

I've done a search of the forums and can only find references to it. Can someone tell me exactly what it means.

Last year the US Supreme Court handed down the Till vs. SCS Credit Corp decision that directs lower courts to "follow a formula approach" to determine the proper interest rate when a bk filer or filers crams down secured assets.

Here's a good (if lengthy) explanation of how this formula approach works - http://www.texasbar.com/Template.cfm...ontentID=13640

You need to be able to open a .pdf file to see this. In case you can't open this link, try viewing it here - http://docs.google.com/viewer?a=v&q=...2XBFYJZVrrhIZw

The bottom line is that courts are accepting the prime-plus formula approach to determining the appropriate interest rate in Ch 13 asset cramdowns.

[optimistic1]

A till rate is only applicable to a crammed down auto loan that is more than 910 days from first finance date.

If you are going to buy a new car, you will not be able to cram it down unless you wait 2.5 years, which means you cannot use a TILL RATE.

I did read a few posts where people modified their interest rates even though they werent at the required 2.5 years, dont ask me how they accomplished that.

What he means when he says your payment will be smaller, is that you will have even less disposable income to devote to your plan, because a new loan cannot be altered.

[tiredintx]

A till rate is only applicable to a crammed down auto loan that is more than 910 days from first finance date.

If you are going to buy a new car, you will not be able to cram it down unless you wait 2.5 years, which means you cannot use a TILL RATE.

I did read a few posts where people modified their interest rates even though they werent at the required 2.5 years, dont ask me how they accomplished that.

What he means when he says your payment will be smaller, is that you will have even less disposable income to devote to your plan, because a new loan cannot be altered.

Gotcha... just read the link from lrprn and now understand that it's not applicable in my case. Thanks for the help!