Question - what did you continue to pay on after you filed?

[cspa522]

My attorney has advised us that we will need to continue to pay on our mortgage, since we will be keeping that outside the plan.

However, she said that we will need to roll both our cars INTO the plan. So after she files for us, does that mean we can stop paying on the vehicles?

I'm trying to do a budget for the next 6-9 months. We are looking to file at the end of November because we will need that long to save up for the attorney's fees (which we are unable to roll into the plan).

If we can stop paying on the vehicles, we can probably move up when we file by a few weeks.

Anyone know? Thanks!

[Cristo]

I stopped paying on my car that was going in the plan before I filed. You can usually miss 2 payments before the repo people come for it. Others will be able to give more complete advice. You should ask your attorney. I'm not sure if it would raise your 13 payment or not, it might if arrears have to be paid on it.

[cspa522]

I plan to continue to pay on the cars and mortgage before we file. I was more curious if after we file I can stop paying on them. And I'm only interested in that because of budgeting. There's a big difference in what's left over at the end of the month without those 2 car payments in there. I believe I do stop paying on them, because the attorney won't want it to appear that I'm showing preferencial treatment to a creditor over the others, but I'm not sure.

I've put in a call to my attorney, but as attorney's seem to go, she's not always the quickest to get back to me. I usually do better to get a quick answer by coming here, then I confirm everything with her when I get ahold of her. Thanks!

[Cristo]

After you file you have to pay a payment to whoever holds your car loan, but it might be reduced from what you were paying. It is whatever you have proposed to pay on the car during your plan. My payment outside the plan was $775/month. Inside the plan it is less than $200 since the car is only worth $10,000 and I am doing a cram down and I am on a 60 month plan. $10,000/60 = $166 plus some small interest.

[lrprn]

We also kept making our own mortgage payment, but our car payments were rolled into our plan to be paid by our trustee. The key is to keep paying your car payments until you start paying your plan payment. Your car payments should be rolled into your plan payments. Your lawyer needs to confirm for you when you can stop making the car payments yourself.

In our case because our confirmation was delayed, our trustee had to get permission from our judge to start making car payments even though our case wasn't confirmed. Something to discuss with your lawyer if you anticipate your case might have objections to deal with that could delay confirmation.

[minan]

My car payment is included in the plan. I've already made my first 13 payment so the only debt I have to pay on now (outside the plan) is the mortgage. I included everything in the plan except for the mortgage.

[andy158]

We pay our first and second mortgages outside of the plan along with the mortgage on one of our rentals. One car payment outside of the plan. The other car was crammed down and is included in the plan. Everything else in the plan is cc's.

[cspa522]

We also kept making our own mortgage payment, but our car payments were rolled into our plan to be paid by our trustee. The key is to keep paying your car payments until you start paying your plan payment. Your car payments should be rolled into your plan payments. Your lawyer needs to confirm for you when you can stop making the car payments yourself.

In our case because our confirmation was delayed, our trustee had to get permission from our judge to start making car payments even though our case wasn't confirmed. Something to discuss with your lawyer if you anticipate your case might have objections to deal with that could delay confirmation.

What kinds of things would cause objections that would delay confirmation?

[BNKRPTinNC]

We had stopped paying on everything other than utilities and insurance. Mortgage and car are being paid thru the plan. With the car they just stretched what was owed over the next five years @6% and the mortgage arrears same but @0% interest. Even the atty fees were in the plan. Currently the only thing paid outside the plan are utilities, property taxes, and the monthly insurance payment for cars and house. It has certainly worked in our favor in making it possible to get back on our feet.