What does this mean?????

[angel7821]

It is Saturday so I can't get ahold of my lawyer until Monday morning and I got a letter from him today about my payment plan. My payment will be 132.00 per month and it is a 36 mth plan. The lawyer had told me in the beginning that my car could not be put in the plan because it would not be paid off in 3 yrs. But in the letter it states the following:

Direct Payment of Unimpaired Claims:

Debtor shall make all payments for unimpaired secured claim of Toyota Financial (address is here) for 2005 Toyota Corolla in the amount of 6210.00

I had originally owed 8400.00 on the car and the lawyer appraised it at 6210.00 for the Chapter 13.

Does this mean I still make the payments of 411.89 (that I was paying every month since I bought it) or does it mean the car has been put in the plan???

I can't make heads or tails out of this paragragh in the letter I got today.
I tried to call Toyota Financial today and they said all contact must be made through my attorney and they would not be sending anymore billing statements to me.

Can anyone help me understand this???

[AngelinaCat]

To me--and I am not a CH13 person--it looks like your car was put into your plan. But wait for lrprn, Flamongo, or Justbroke to come on and give their opinions. They are much more knowledgable about CH13 matters than I am.

Good luck to you

[justbroke]

Actually, that looks very confusing. Since this letter came from the lender (Toyota Financial), I would just wait to speak with your attorney. This isn't "urgent", so calling him on a Saturday or Sunday isn't necessary.

I can't tell you what your plan payment would be at all. Usually, when you "value" a secured item, you have to pay that amount over the life of the plan. Also, you get to adjust the interest rate to something known as the Till rate (which is currently based on a prime lending rate of 3.25% plus a risk factor between 1-3%). I have no idea what your payment is or will be, what your interest rate is, or even if you are or are not paying off the vehicle during the length of the plan. All are factors.

This is a question only your attorney can answer.

(For example, at a Till rate of 5% and a 36 month plan, the payment on your car would be $186.12 over the 36 month period, on a balance of $6,210. Since you are talking about a $411 payment and paying outside the plan... there's not enough information to tell you exactly what's going on.)

[angel7821]

The letter I got today is not from Toyota it is from my lawyer. I tried to contact Toyota Financial today and the recording just said no more billing statements would be sent to me. That is why I am wondering if the car is in the plan. Toyota Financial has also restricted access to my account.

[becky20]

That's confusing - $132 a month X 36 months is less than $5k, and since you said the value is over 6k, my guess is your car is being paid outside the plan, but as to what you have to pay or to who, no idea - hopefully you get an answer on Monday!

[angel7821]

So are you guys telling me that my payment amount on the car is going to change? I have always paid 411.89 per month since I got the loan and since my lawyer appraised it at 6210.00 I will be getting a different monthly payment now? This is so confusing to me. I wish it was Monday so I could talk to my lawyer.

[SMinGA]

I can't see a reason why NOT to include your car in the plan. If its eligible for a cram down AND rate reduction by being in the plan. (Did you buy it more than 2 1/2 years ago?)

If it is in the plan you'll pay more than $132/mo but you won't make the $411 car payment anymore. Talk to your atty before sending the next car payment.

[momofthree]

This IS confusing. The payment of $132 isn't high enough to cover the car--even at the reduced rate. Like JustBroke said, that would be a payment of around $187 + attny fees + trustee fees, you'd probably be looking at a payment of around $250-ish per month. BUT then you wouldn't be making the $411 car payment anymore, so that might end up increasing your DMI (depending on if you can pad other expenses), and then you'd end up with a higher payment and more going to unsecured creditors, so then it might be best to keep the car outside the plan and keep the $132 payment.

Like I said: confusing. And probably something only your attorney can answer.

[angel7821]

I can't see a reason why NOT to include your car in the plan. If its eligible for a cram down AND rate reduction by being in the plan. (Did you buy it more than 2 1/2 years ago?)

If it is in the plan you'll pay more than $132/mo but you won't make the $411 car payment anymore. Talk to your atty before sending the next car payment.

I bought the car new in 2005.

[justbroke]

I bought the car new in 2005.

The car is subject to cramdown, and I believe that's what your attorney did, by valuing it at $6,210. If you had it since 2005, then it reads as though you didn't have much more than 2 years left in payments? Or did you refinance?

Something is just not adding up, and rather than speculate, you should really be speaking with your attorney.

[angel7821]

The car is subject to cramdown, and I believe that's what your attorney did, by valuing it at $6,210. If you had it since 2005, then it reads as though you didn't have much more than 2 years left in payments? Or did you refinance?

Something is just not adding up, and rather than speculate, you should really be speaking with your attorney.

I did not refinance and I have 20 payments left on the car.

[justbroke]

I did not refinance and I have 20 payments left on the car.

Okay, there's where it got confusing. Earlier you wrote that... "my car could not be put in the plan because it would not be paid off in 3 yrs"... and I thought that meant you had more than 3 years (36 months) of payments left.

[angel7821]

Okay, there's where it got confusing. Earlier you wrote that... "my car could not be put in the plan because it would not be paid off in 3 yrs"... and I thought that meant you had more than 3 years (36 months) of payments left.

That is what my attorney told me when I went to file for BK. He said I could not put the car in the plan because it would not be paid off in 36 mths with my payment of 132.00 per month. So according to the letter he sent me today does it sound like the car is in the plan then?? I will get ahold of my attorney on Monday and get clarification on this letter I got from him today. I am just confused about the whole thing.

[SMinGA]

Sounds like what he first told you may have been a miscalculation? Such as he was basing your plan payment of $132 on DMI considering you were making a $411 car payment. But if the car IS in the plan then you would not make that car payment and your DMI would be $543. ($411 + $132.)

What have you been paying? Has your plan been confirmed?

[angel7821]

My 341 hearing is May 4 and my confirmation hearing is June 3. My first payment of 132.00 is due April 20.

Here is my situation. I did not qualify for a 7 because I live with my boyfriend and he makes too much money and they had to factor his income in. But my payment amount is based on only my income.

My take home pay is 1080.00 per month. Out of that I have to make a car payment (which was 411.89 now I don't know what that amount will be) car insurance is 57.00 per month and the trustee payment of 132.00.

I am an independent contractor so my bonding and insurance payment is 32.00 per month and I also spend about 15.00 per month on cleaning supplies for my job. Gas for the car (job wise) costs me about 35.00 per week (140.00 per month).

That is about all the expenses I can pay out of my paycheck and the boyfriend pays all living expenses.

Oh I also make estimated tax payments to the IRS because of my job but I have that sent up to pay every month with the IRS and the trustee will be okay with that situation my attorney has told me.