Chapter 13 100% payback , what is it?

[Hobbies]

What would the payment in a 60 month Chapter 13 be for a 100% payback on the following:

Law Fees 3500.00

House has first and second mortgage about 60K underwater going to walk away.........

First 167K
Second 125K

Two unsecured
25500K and 23K

Two secured
20K and 17500K

Thanks just trying to make up my mind......

Hobbies

[LadyInTheRed]

If your loans are recourse loans, than the monthly payment in a 100% plan would be the difference between what the lenders receive in the sale and the balances of the loans, plus $48,500 in unsecured debt, plus $195,000 in secured debt (assuming you will keep the secured assets), plus $3,500 attorney fees, plus a percentage to the trustee (6% maybe), all divided by 60, assuming your income is above median. Without the trustee fee or a mortgage deficiency, that's $4,116.66 per month in a 60 month plan. This assumes you have no arrears on your secured debt or delinquent taxes or other priority debt that would have to be included.

What makes you think you'd be in a 100% plan?

ETA: There would also have to be interested paid on the secured debt.

[Hobbies]

LITR

Maybe using wrong term here.

Looking to pay balances of unsecured, attorneys fee, and I quess mortgage deficiency in plan. I have a car and travel trailer loan that I would like to pay outside of plan. I throught if I was paying 100% of all but the house, the trailer would not be an issue.

Thanks

Hobbies

[LadyInTheRed]

Usually, a 100% plan means that unsecured creditors get paid 100%. If there is a mortgage deficiency, it would be included as unsecured debt.

It sounds like you want to determine what your minimum plan payment would be. If you are giving up the house, the unsecured debt and mortgage deficiency aren't part of the calculation since there is no minimum you must pay to unsecured creditors. Also, if you pay the trailer and auto loan outside of the plan, they aren't included in the minimum payment either. So, your plan payment will need to be enough to pay at least your attorney fee and a trustee fee over the life of your plan. If you are paying $3500 in attorney fees in your plan and are current with your car and trailer payments, your minimum payment in a 60 monthly plan will probably be somewhere between $60 and $65 a month, depending on the trustee percentage. Also, if you have any non-exempt assetss (like equity in the trailer, perhaps), you also need to pay at least the non-exempt value of those assets over the life of the plan. But, you must pay all of your disposible income into the plan. The unsecured creditors would get what's left after paying the attorney fee and trustee fees. You only pay 100% to unsecured creditors if you have enough disposible income to do so.

Does that make sense? If not, keep asking questions.

[Hobbies]

LITR
Attorney says travel trailer must go even if not included in the plan (Luxury Item). So I was trying to figure a way around this issue. Not having much luck and he is firm on this as part of the plan (TT going bye bye......).

Thanks

Hobbies

[LadyInTheRed]

That makes sense. I didn't think about that issue. Since the trailer is not a necessary living expense, you wouldn't be able to deduct that amount as an expense when determining your disposible income. I suppose once you have a confirmed plan, you could make payments on the trailer anyway by cutting elsewhere in your budget. But, if the trustee finds that out, he could see that as evidence that your DMI is higher than stated on your petitions. If you think you can make a cut from allowable expenses big enough to make the trailer payments, ask your attorney if that would be problematic. It probably is or he would have suggested this option.

[Flying2BK]

Isn't the whole idea of a CH13 is to keep/protect assets? Can he not keep the Travel Trailer if it was paid off? What about a "buy back" ?

[momofthree]

If the travel trailer was paid off, he could keep it by paying at least the liquidation value towards unsecured creditors over the plan term. However, luxury items that are not owned outright are normally objected to b/c that monthly payment is money that can go towards unsecured creditors...

[Pandora]

If the travel trailer was paid off, he could keep it by paying at least the liquidation value towards unsecured creditors over the plan term. However, luxury items that are not owned outright are normally objected to b/c that monthly payment is money that can go towards unsecured creditors...

Yup - agree w/momofthree. We got to keep our TT, however we had to pay its value into our plan to do so. If we had had a payment on it, it would've had to go.

[Hobbies]

Thanks, All.

There is a payment and Momofthree is correct. Just wish we could find a way. Its just one of the simple things we will miss for a while.

Hobbies

[Flying2BK]

Ahhh---that's the difference. Owned outright --vs---a loan.

I am trying to hold onto a boat, I OWN it. I will "buy it back" just hoping I have some pennies and nickels left over to use it once and awhile....

[greenthinker]

Just thought I would chime in, since we are facing the same issue. We won't be filing until probably January, and we have a 5th wheel that we are making payments on. In our situation, our DMI is high enough to pay our unsecured creditors 100%, even with the trailer payment. So, we expect to be able to keep our trailer, even though it is a luxury item that we are making payments on.