car loan less than 910 days

[jimbo367]

I know I can't cram down this loan because it is less than 910 days or 30 months, but can the interest rate be changed to a lower rate?

If anyone knows the section of the code that applies I would like to study it.


Jim

[lrprn]

I know I can't cram down this loan because it is less than 910 days or 30 months, but can the interest rate be changed to a lower rate?

If anyone knows the section of the code that applies I would like to study it.

There is no section of the bk code that forces a lender to modify a signed loan.

You can ask any lender for a loan modification whether you file bk or not, but whether the lender agrees to the modification is purely voluntary. If our member experiences here are any indication, modifications are quite rare.

It hurts nothing to ask for a loan modification - just don't tie yourself to it happening.

[NoTomatoCan]

Jimbo - Not sure if this is what you are talking about, but we included our 12.5% car loan in our plan. The loan was only 4 months old on a "new to us" SUV. As part of our plan, the car loan is being lowered to the "Till" rate of our district (I believe it is currently 5%). The net effect is that our car payment is lower, but all that "savings" just goes to the trustee and our unsecured creditors.

[BnkrptcyLwyr]

I know I can't cram down this loan because it is less than 910 days or 30 months, but can the interest rate be changed to a lower rate?

If anyone knows the section of the code that applies I would like to study it.


Jim

Yes, the interest rate can be adjusted, and you can lengthen out the term of the repayment to bring the payment down. However, because it is less than 910 days since you purchased the vehicle, you cannot bifurcate or "cram down" the claim under 11 USC 506(a) - must pay the full amount of the claim.