Confusion here on 36 vs 60 months

[chinup]

Did the test with an attorney, says I qualify for the 36month plan. Yet, my secured assets-2 cars, could not possible get paid in 36 months though it could in say 48 months or so. Then someone told me that they calculate it at 60months, but you only pay for 36 then discharged.

Waiting for attorney to call back but they are gone for a week.

So, anyone know by chance?

[justbroke]

The amount of time you are in a Chapter 13 is based on whether you are under the median or over the median income. You are in it for 36 or 60 months respectively. Please know that your car might be re-valued if you owned it for more than 910 days (or refinanced it). Your car payment also gets re amortized by taking the value and dividing by 36 or 60 (and accounting for a new interest rate as well... known a the Till rate). This new interest rate could be as low as 3%.

Technically, for purposes of the Means Test and determining the disposable monthly income (DMI), car payments are calculated based on the value divided by 60 (plus any interest calculation).

I think that you should wait for your attorney and have them explain it to you. Please don't go looking for answers because a Chapter 13 payment is hyper-technical and there are many variables.

[chinup]

I am just under the max for 36months so I am under 36 months which I though I had explained. Just curious about how things are calculated is all. Thanks

[momofthree]

If you cannot pay off your minimum within the 36 months, then you can opt for a longer term. We qualified for a 36-month term, but chose to go with a 60-month term for that reason (car payment too high to pay off within 36 months).

[chinup]

If you cannot pay off your minimum within the 36 months, then you can opt for a longer term. We qualified for a 36-month term, but chose to go with a 60-month term for that reason (car payment too high to pay off within 36 months).

Hmmm, real quick then. Do they base the amount off the value of the car or what is owed? I understand the present value for cram down purposes but not sure if the 2.5 year rule applies or not in California.

[momofthree]

Hmmm, real quick then. Do they base the amount off the value of the car or what is owed? I understand the present value for cram down purposes but not sure if the 2.5 year rule applies or not in California.

The 910-day rule applies in all states. Therefore, if you're doing a cram-down, it will go off of the present value. If you do not qualify for a cram-down, then it is based off of the amount owed.

[chinup]

Thanks, met with attorney today. My max for 36 months is 77k a year. My based is 70k but a bonus pushed it to 77,583! She is not sure which way the trustee will go-36 or 60 months. This bonus is not guaranteed and so far this year I am not on track to receive one.

[momofthree]

When did you get your bonus? Can you wait for it to drop off of your 6-month lookback?

[chinup]

Last month! SIGH, I am curious as last year when I visited an attorney I was told the max was 79k. What changed?

[momofthree]

Last month! SIGH, I am curious as last year when I visited an attorney I was told the max was 79k. What changed?

Median income is updated a couple times per year. With unemployment so high, it's dropping rather than increasing....