Please help. I'm 1 month into the ch13 plan and the trustee just filed a motion to dismiss the ch13 filing. I called my lawyer, and he said that the trustee wants me to add my car to the plan. I have one year left on the car. My lawyer told me that if I add the car to the plan, it will get paid off earlier. Is this true? If it gets paid off earlier, will I get the title to the car if I include it in the ch13?
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In my case, my car was only about 6 months old when I filed Chapter 13. We included my car in the 13. What happened is that the bank listed it as a "secured" claim, which meant that I would be paying ALL of it, over the course of my plan. The Trustee did negotiate them dropping 9% interest to 6% interest. When you begin paying your 13, most of your money goes to all of your "secured claims" first .. and then once they are paid off, the Trustee begins paying your unsecured debts.
In my case, the car was paid off faster this way, and about 4 years into my Chapter 13, the car was fully paid off and the bank issued my title to me. HOWEVER, the bank did tell me that some states do not allow the bank to release the title until your BK is fully discharged, even if it is paid off. But not in my state. I got my title.
This is what happened in my case - but as I have learned, every state and every Trustee is different. Your case may be very different. But I wanted to give you an idea of the process that happened to me. -
when we filed. we had a 09 corolla and a 05 Explorer. The lawyer said because we did not have the car for 2and1/2 years that we had to turn it in. we kept the Ford. Payment was 350 a month. but was put into the plan at 200 a month for 5 years. The way they did mine was not what I owed but what the car was worth.Comment
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Thanks for the insight. Hopefully, the title will be issue once it's paid off. I haven't sign the amended change yet. I'm not understanding why they insist on having the car added. The car is worth more than what I owed and it's got only one year left. My car payment is $600 and my plan payment is $230. They want the car in there and have the payment level at $750 so they don't have to do a step up later. For five years that's $45,000. I owe $15,000 in credit card and foreclosed my house (which has a differences of $35,000). It seems unreal that I have to pay 100%+ on my debt and having the trustee watching my financial. I make $15,000 over the median income.
The only reason I file is because of the foreclosure. I'm afraid they'll come after me one day and that my credit will never recover because they're lurking in the back. I don't know what to do. Should I drop out of the plan and deal with foreclosure deficiency when it comes? I will talk to my lawyer more on the subject.Comment
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If you have unsecured debt with the same bank that the car is financed with, the bank is the one trying to get the car in the plan. This way, you will be paying on what the car is worth, not what you owe. If the car is in the plan, you wont get the title till the plan is complete.Comment
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I don't want to put the car into the plan. I don't want to loose the car if for any reason my financial situation changes. You never know what's going to happen within five years. If the lawyer say that I will get the title when it's paid off, "Is the lawyer feeding me a lie?" I will talk with my lawyer more on this matter.
The trustee is pushing for it. The trustee say it makes it easier for book keeping. What can I do if the trustee pursue on dismissing my case if I refuse to include the car in the filing? My lawyer is preparing the amended paper now and wants me to go in and sign it.Comment
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