Anyone ever work out payments on thier chp 7 case???

[253BK]

Hi everyone below I have a thread about my cars and equity long story short we have about 37K in cars we own outright and we were in chp 13 for 8 months paying in about 24K to our IRS bill that plus exemptions we should be clear but NO!!!

We got one of the tuffest trustee's in WA and he wants 10K to make the deal right and for us to discharge...

My question is has anyone owed money in thier chp 7 and be able to work out a payment plan? If so how did it work and was it a nightmare or work out well?

Please post up some info I am about to pull my hair out

[fooked]

just so I'm reading it right...

your trustee wants $10K to allow you to keep vehicles, etc. that are above your exemption amount?

Is that right? If so, I'm glad you asked, because I'm going to be in the same situation here shortly...

[67caprice427]

I was in a ch7 with assets and the tt made me a GREAT deal- $ 3600 and gave me a 12 month plan to pay. With permission from the tt, I was able to sell a few of the assets and paid him off in 2 months :-) The best thing was , the majority of those funds paid off my IRS bill. Woo-hoo!! no more tax bills OR cc payments! life is soooo much better now.

[253BK]

yes he wants 10K above what we have exemptions for... We are thinking of working out a plan of 1000$ per month for 10 months or he will let me take a loan agianst my truck for the funds also but that is at 25%

[fooked]

if you can avoid taking the loan against the truck, avoid it... he's offering an interest free loan... taking one loan with interest to pay off a different loan without interest doesn't make much sense..

[roozterdvx]

We also had an "overage" in our ch7 case and we are paying back interest free to the tt for 12 months.

We are getting ready to move in a couple of weeks and are going to a smaller house so we will be selling some of our stuff and that money is going str8 to the tt to knock down the balance.

[fooked]

I hope my situation works out this way as well..

[AngelinaCat]

We were an asset case as well. Our trustee allowed us to buy back our stuff at a discounted rate. We paid $450.00 a month for 1 year and then it was over. The majority of our debt is IRS too, so that is what the money is being applied to once he takes his fee.

[lrprn]

...long story short we have about 37K in cars we own outright ...

When did you find out you would have to pay the trustee back since your $37K worth of cars couldn't be fully protected if you converted your 13 to a 7? How did your trustee come up with $10K as the pay-back figure? Is that the entire amount that couldn't be protected by your Washington exemptions when you converted?

One more question.....would it make more sense in the long run to surrender one of the cars if that prevents you from having to pay the trustee the $10K?

[HHM]

What are the vehicle exemptions in your state?

Since you are paying the IRS, I would recommend staying in the chapter 13, you need the discharge or else the IRS can add back in the penalties and interest that stopped accruing as of the date your filed, etc.

In a chapter 13, your unsecured creditors must receive at least what they would have if you filed chapter 7; which means, if you have non-exempt equity in assets, you must pay the value of that non-exempt equity.

[253BK]

I was in chp 13 for 9 months and paid in about 25,000$ which paid off my IRS bill and left 3100$ on the table which they sent me back... then we converted since the IRS was paid and we were giving back our home, Then after all this the trustee decided hey I think there is 10K equity in your cars so I want one or the 10K

If I surrender my wifes 09 scion XB they will auction it off and it might bring in 12-13K they would send me back the funds left over but then she has no car and works full time

or I get the loan that will at least report on my credit for now and pay say 1000$ monthly when the regular payment is only 354$ for 54 months so I should be able to pay it off quickly if all goes well that way!

What are you thoughts? The loan seems easy my only problem with giving up the car is the trustee is a hard nose and very blunt my luck he just blows the car out and we end up owing him more cash I really dont have!

[HHM]

Did you do this on your own, or did your attorney do this?

What other debts did you have?

Now that you are already converted, I suppose it is too late to salvage the situation, but based on what you are telling me, with non-exempt equity, conversion may have been the wrong move, but without more info, I can't say.

Bottom line with non-exempt equity.
1. You make a deal with the trustee to pay the value
2. Allow the trustee to take the property.
3. Redeem the vehicle, assuming you can get a redemption loan and pay the trustee that way.

[253BK]

Our attorney told us to convert and I think part of it was due to him wanting to make more money which he did!!! We had paid in about 25K to our plan and he said with the money you paid in plus exemptions you are clear to keep your cars 2 weeks later we go to the 341 and BOOM the trustee drops the bomb on us about the 10K

Now our attorney says well I thought he would let it go through but I guess not so just get the redemption loan form US bank and pay him off the 10K

since we own the car outright they just put a lien on it and have us pay payments or 54 months at 25% which means after 4 years I pay almost 20K total that is the part I am not happy with at all!

TO top it all off our attorney called and said we had a check for the money we got back form our chp 13 which was 3180$ of which he took 1776$ more on top of the 2100$ I paid to have him file this all!

Do you think I get screwed??? I feel that way now

[HHM]

I think it was probably bad advise to convert. When you convert, you are creating an entire new bankruptcy so if you bring with you non-exempt assets, they become vulnerable in the subsequent chapter 7.

[LSUTiger32]

I am not sure about this situation but let me see if I got some of this straight. You have a chance to discharge all your other debt (which I assume there is some of), you paid off your IRS debt in the 13, and you get to keep $37K worth of vehicles for $10K? Do the 12 month interest free plan with the TT and be done with it. Sounds like a great deal to me.