Car payments with a Chapter 13

[Depressed]

We currently have about 15 payments remaining on a vehicle. We are current on the payments which run a little over $300 a month. When I went for a consultation last week the attorney said that if we had to go with a Ch13 the remaining amount on the car would be paid over 60 months in the plan. Is that how they do things? The car wouldn't be paid off for five more years and we wouldn't receive title until then?

It's a six year old vehicle with 100k miles. It won't last 5 more years without a significant amount of money put into it. Not sure it's even worth keeping as we owe $4200 and it's worth maybe $3000. Didn't want to even try to buy anything else at this point. Maybe in a year or two, but the attorney said that buying a car while in a 13 was somewhat of a nightmare. Doubt I could even get anything at this point with all of the recent charge offs I have.

[lrprn]

When I went for a consultation last week the attorney said that if we had to go with a Ch13 the remaining amount on the car would be paid over 60 months in the plan. Is that how they do things? The car wouldn't be paid off for five more years and we wouldn't receive title until then?

This varies depending on the Ch 13 filer's situation and the local bk court and trustee customs.

It's a six year old vehicle with 100k miles. It won't last 5 more years without a significant amount of money put into it.

One thing for sure - if it's at all possible, please go get a newer, more reliable car *BEFORE* your 13 is filed. You are setting yourself up for some very difficult problems down the road when your old car almost certainly poops out before your 13 is over.

Don't assume what going to happen if you try to get financing - go find out what possible. Ask during your 3-4 free initial lawyer consultations if the lawyers can recommend any local lenders or dealerships that are more reasonable to those with less-than-stellar credit scores. Good luck!

[SMinGA]

Our district also requires car loans to be paid off in full in the plan. Secured creditors get paid before unsecured though - and so it would probably be paid off sooner than the end of your plan.

[flyinbroke]

That is good to hear; I am close to the end of paying mine off and was told it had to be rolled into a 5 year plan. I don't want to be paying 10 years on a car, even though I intend to keep it till it dies. It may die by then and then I am screwed.

[Depressed]

Thanks. As far as buying something newer, I've got a post going in the general section about not being able to take the vehicle ownership expense on the means test on a truck we don't owe anything on. Since the truck is 10 years old, it had been recommended to me that, I finance something newer. Can't afford to swing 2 car payments, barely can do the one I have now. I come up with nearly -$1000 DMI on the means test yet the attorneys still think I'm a CH13 case?

[Lissy]

I have 14 months left to pay on my car. It is not included in my plan. However, when it's paid off, my monthly payment to the trustee will increase by the $500 I pay on the car. It won't be extra money for me, but the car will be paid off.

[optimistic1]

I have 14 months left to pay on my car. It is not included in my plan. However, when it's paid off, my monthly payment to the trustee will increase by the $500 I pay on the car. It won't be extra money for me, but the car will be paid off.

I would find a way to increase your allowable expenses and then justify them.

[flyinbroke]

Simple...insurance costs. My rental insurance shot up a whopping 40 percent just because three accounts (out of 18 owed) are 30 days past due! I imagine my car insurance will do the same. My car payment will have to cover my insurance lol.