Do Cars have to included in Plan

[Floridagail]

Hubby was hoping to avoid filing 13, but it looks like he will have to soon. I was wondering if the 2 cars which are current , have to include the plan payments. We were hoping to retire soon, but not happening. So the cars are over 2 yrs old, but still owe over 18000.

[BKAttyMI]

Depends on your area whether the Trustee will require cars to be included or not. Many times, it is silly not to include vehicles in a Chapter 13 payment as it can either be crammed down or the interest rate reduced, both options you should discuss with an attorney.

[justbroke]

If your cars were each purchased more than 2 years ago, you should see if that purchase was really more than 2.5 years ago (910 days)! If so, then you could "cram down" the cars to their actual current value and possibly lower the interest rate at the same time. So, as BKAttyMI wrote, it would be a better option to include them in the plan, especially if they are 2.5 years old OR have been refinanced since purchase. You should save a lot of money!

[Floridagail]

Yes they were bought in july and aug 2010. By time he files it may be possible. I was just wondering one person filing could have 2 cars, one for personal use and one used for business. Also could he claim the house payment 1573 since he is going to possibly let the house go also. and maybe let one of cars go too. I am attempting to do means test. We have appointment with attorney this week. I think he will have to retire or work 20 hrs week to be able to do chptr 7 in 6mos, if he cannot count housepmt and both cars.