cars payments on the means test

[deadbroke99]

My car and my dh's car will be paid off in three years. My car payment is $280 a month for a 2004 Camry and $260 for dh 2007 Ford Ranger.

I read somewhere that on the means test you can only include these payments if they will be 5 years or longer. Is that right?

[outsidetool]

My car and my dh's car will be paid off in three years. My car payment is $280 a month for a 2004 Camry and $260 for dh 2007 Ford Ranger.

I read somewhere that on the means test you can only include these payments if they will be 5 years or longer. Is that right?

I do not believe that the amount of time still due on the loans matters. The means test uses 5 years--60 months--and takes the balances owed on the vehicles and 'respreads' them over what a 5-year Ch 13 plan would be. They also use an interest rate that's kind of 'preset' I guess. So you're interest rate being paid on the car loans may be higher or lower than what you're actually paying now. Example: I was paying $800/month on a truck, 3 years left on loan, 0% interest rate. For the means test, they took the balance owed of $33,000, put an interest rate of around 6.5% on it, spread it over 60 months, and showed a payment amount of around $650/m for a Ch 13 plan. Now I've heard that if you've had a vehicle for over a certain amount of time you may be able to 'strip' the unsecured value in a 13; but I don't know much about that.

[cyn5]

What about leased vehicles? For instance, I have about 2 1/2 years left on a lease, would they take what I owe on my lease and spread it out over 5 years on the means test even though I would not have that car after the 2 1/2 years is up? How exactly are leased vehicles calculated on the means test if you do not want to give them up (reaffirm)?

[laurannm]

What about leased vehicles? For instance, I have about 2 1/2 years left on a lease, would they take what I owe on my lease and spread it out over 5 years on the means test even though I would not have that car after the 2 1/2 years is up? How exactly are leased vehicles calculated on the means test if you do not want to give them up (reaffirm)?

Correct. When we filed we had just entered into a lease with Chrysler. On the means test our lawyer took the payment amount, multiplied it by the # of months left on the lease, and then divided that number by 60 months.

[cyn5]

thanks Laura...that makes more sense.