Cars and Ch. 13

[deepwoods]

If you file for Ch. 13 and are current on your car loan at the time, and the car was only purchased ~18 months ago, can the car (or minivan) be included in the repayment plan? Or would we agreeing to a repayment plan and still making our car payment as is? This makes a huge difference as to whether we would first try for a Ch. 7.

[BNKRPTinNC]

Probably depends on how your district handles it. We filed in the middle district of NC, the car and rv were both included and paid thru the plan along with the mortgage. We weren't given an option to pay outside the plan for any of our secured loans. However, we were not current on the car and mortgage at the time of filing so that may have had something to do with it.

[andy158]

For what its worth we have a car payment outside our plan. We will still be making payments after our bk is complete. Our other vehicle is included in our plan and is being crammed down. See this link for explanation if you are not familiar with this http://www.nolo.com/legal-encycloped...ankruptcy.html

A chapter 13 plan is geared for assets you want to keep such as your home and vehicle. If you are current with the payments on your secured assets chances are the payments will continue outside the plan and will be calculated as such when you do you schedules with your lawyer. Luxury items such as boats, motorcycles, rv's and such will not be allowed. We had to surrender a boat and motorcycle even though we were current on all payments. The trustee is going to get all they can for the unsecured creditors. This may vary between districts.

[deepwoods]

Thank you, that is helpful. I had just read about what it means to cram down a car on nolo, and ours does not qualify since we haven't had it long enough.

I am going through the means test on my own, with more complete info than what I had when I spoke to an attorney, and we are just under the median for our family size. I am leaning towards filing pro se for a 7 at this point, since timing is of the essence to qualify under the means test and to stop a garnishment.

[BNKRPTinNC]

Our 5th wheel was crammed down and paid off thru the plan. Still scratching my head over that as I thought for sure it would be sold so that more could go to unsecured.