341 meeting today

[dewcie]

I have only posted one other time, but have been actively reading for a few weeks since we decided to file Ch13. We filed June 7th and made first payment and had 341 meeting today. It went pretty good, but our attorney did warn us that they may ask about a $285 car payment that she put into our budget. We currently have one vehicle with a loan that is included in the Ch13 payment and then own an old 95 pick up free and clear that my husband drives. She put the payment into our budget because she said that we most likely need a vehicle within a few months. Truck still runs good, but has 223K miles on it so could die at some point. My question is that they did ask about this and she did explain it and they seemed okay with the explanation. Has anyone ever had them question your budget related to vehicle expenses? I would hate to have our payment increased by that much.

[SMinGA]

Your attorney put in a payment instead of maintenance/upkeep... The trustee will probably object - its their job to object to something. Perhaps your attorney setting it up this way - gives the trustee something obvious to look at and keeps the rest of your budget from scrutiny?

If the trustee objects - your attorney will probably modify to move the $285 to upkeep/maintenance instead of a vehicle payment that you don't have. Then down the road, once you are ready to retire the old truck - you'll petition the trustee for permission to take on new debt and find a replacement vehicle. The trick will be getting approved for financing AND keeping the payment at $285/mo...

[needanswers]

Bases on my observations at our 341, it's very possible the trustee will object to that future car payment on your plan.

The trustee asked EVERYONE that had a car payment (included in the plan or not) how long their loan was for, the car make and model and payment amount and time remaining on the loan. He specifically told the people whose loans would be completed during the plan that he wanted a modification done as soon as the car loans were over because he wanted that money.

[lrprn]

dewcie, I'm trying to figure out why your lawyer let you file Ch 13 with a vehicle with over 200,000 miles on it. The best thing to do would have been to buy a reasonable car *before* filing, then include the car payment in your plan when you filed. That way there's no objection and chances are you would have gotten a lot better loan terms as well.

Buying a car during an active Ch 13 is challenging. The terms won't be good - expect an interest in the high teens at least. Finding a dealer who will work with you during your Ch 13 is tough. It can be done, but it's hard work.

But what's done is done. You'll have to ride the Ch 13 wave to see where it's going to go and work with your lawyer to deal with any objections that your trustee or creditors may file. Your lawyer is likely going to earn her fee. I just hope that the contract you signed when you retained your lawyer covers dealing with objections and won't cost you extra if your trustee or a creditor files one (or more).

Keep us posted about what happens with your case. I hope it all turns out for the best.