I'm in chapter 13. I filed 6 months ago. I elected to pay my car note out of the plan. I'm still having trouble making the payments. The court filed a lift of stay. Can someone explain a Redemption loan. My car note is 662.01. The interest rate is 18.42%. My car is a 2008 Cadillac CTS. I'm trying to get a lower note. My second question. I'm currenty employed as a teacher while still going to schooll to get certified. To pay for this I have financial aid. I had this prior to filing Chapter 13. I have another year until I complete the program and have to file for financial aid. Will I still be able to receive financial aid because I'm not able to afford to pay for these classes by myself. Will I get in trouble or have my case dropped?
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When you state that the “court filed a lift of stay”, do you mean that the court has already signed an order lifting the stay or do you mean that the creditor has filed a motion to lift the stay? If the stay has already been lifted it is unlikely that you will be able to work out something with the creditor. If the stay has not been lifted you need to file a timely response. You might consider filing an amended Plan to pay the vehicle through the Trustee - this would allow you to reduce the interest rate quite substantially.
There is no such thing as a Chapter 13 redemption. If you purchased the vehicle more than 910 days prior to filing you can cram down the value through the plan. If it was less than 910 day then the creditor is entitled to the full amount of the purchase price - but not, neccessarily, the full interest rate.
You will not “get in trouble” if you decide to drop out of the 13.
It sounds like you do not have an attny. It might be a good time to seek the assistance of one - at least to give you an idea of what you can and cannot do.
I cannot answer your question about the financial aid.
Des.
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