I thought I read hat if yu buy a car and it has a high interest rate, that it will be reduced to 6 or 7 percent. Does this payment have to be included in the chap13 or can it be outside plan. If outside does te interest rate stay the same?
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Both mine were dropped down to 5%, with the balance paid in 5 years, and is included in my payment to the trustee. -
Just to make things clear, *ALL* debt is included in the Ch13 Plan. Whether the payment needs to be paid by the trustee or paid by you directly is a function of the confirmed Plan, and apparently trustees each have their own preference as to how they want things done.
JohnFiled Chapter 13 pro se: 9/30/2008, 341 Meeting: 11/15/2008, Plan Approved: 1/6/2009, 100% of all claims paid: 10/19/2010. Trustee closed case: 11/5/10 DISCHARGED: 11/18/10
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In general, creditors secured by personal property are paid through the Plan if the property is not surrendered. A creditor secured by a vehicle that was purchased within 910 days prior to filing is entitled to its contract balance. The interest rate is subject to "cram down". A reduction to anywhere between 5 and 7% is typical.
Des.Comment
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We had the interest rate on both new cars lowered and had the balnce of both new quads crammed down as well as the interest rate.
All payments are included in the payment plan for us.Comment
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Similar situation here: Noticed that Trustee was paying more on our car payment than we were pre-BK. Our lawyer said the Trustees was making a higher principle payment in order to pay off the loan quicker. This then provides more cash to pay to unsecured creditors later. He reminded me (for the umpteenth time) that the Trustee works to maximize payout to the creditors.Comment
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