What are the guidelines for adjusting the value of an installment loan secured by a vehicle? Is the interest rate always adjusted, or just the vehicle value? If so, how is the new interest rate calculated?
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Ch 13 filed 06/22/09. Dismissed,thankfully, 03/31/10. Ch 7 filed 06/28/10. 341 07/29/10. UST POA 08/06/10. UST mot to dismiss hearing extended to Dec...Feb...March...May...Aug. UST withdrawal of dismissal filed 05/31! DISCHARGED 07/12/2011! -
Cramdown means to lower the secured debt to what the vehicle is worth - and I believe the cutoff is that you must have purchased the vehicle 3 1/2 years before filing. I think that is to keep someone from buying a new car (with the knowledge that it depreciates instantly upon becoming 'used') with the intent to cramdown in a 13 from the start. Before the changes of 2005, people could do that.
The allowable apr may be based on your district. Our vehicle is being paid in the plan, and is listed in our plan @ 5.5% instead of the 10.75% in the contract. We did buy it just over 3 1/2 years before filing, but I don't think that had anything to do with the change in APR.Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.)
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