Anyone try to negotiate lower car payment with credit union after 341?

[Loveandlight]

I have a car that I have had less than two years so it can't be included in the payment to Trustee with negative equity shaved a bit. I asked my attorney if we could go into the credit union ourselves after our 341 and ask for some of the negative equity to be decreased, and he said "if you dont ask you won't receive."

(he should run for office... Never gives a yes or no answer. So annoying."

Our car is worth $18k and we have $23k left to pay.

Thoughts?

[justbroke]

Since your the vehicle was purchased less than 910 days before you filed, you have found that you can't "cram down" the value to the current market value.

I have never read anywhere in a Chapter 13 that a automobile lender voluntarily reduce the principal balance on request. Thoughts are that a Credit Union is never your friend in this situation.

Unless you bought your car less than a year before filing, the "re-finance" power of the Chapter 13 should get you a lower payment. Additionally, if your interest rate with the CU is higher than 5%, your attorney should reduce the interest rate down to the Till rate (currently 5.25% -- includes the 2% risk factor). That may provide a little relief.

Other than that, your attorney is right. It doesn't hurt to ask, but I think it's futile when speaking with a credit union!

[karm43]

Does your car have to be in the plan for reduced rate? I told my att I wanted my car in plan cause I am paying 17 percent and it would go down. Thanks to the forum I knew that. he he

[justbroke]

Does your car have to be in the plan for reduced rate? I told my att I wanted my car in plan cause I am paying 17 percent and it would go down. Thanks to the forum I knew that. he he

Technically, everything is "in plan". The question is really what affect does this have if property is "paid outside the plan". In most Districts, you are required to pay "inside the plan" (and through the Trustee) if you are in arrears or you are cramming down (or stripping down) the value of the property.