car exemptions in ch. 13 vs 7

[worriedmom]

New here. I will be filing for ch. 13. If I own a car paid off worth $10k, and we buy a car worth $5000 (to replace my husbands with 200k miles on it) with our tax refund first...will that make us owe $5000 more to the c/c companies since we will be $5000 over the $10000 exemption on cars? Or no, because it is ch.13 and not 7?

[krielly]

The is no difference in your exemption amount for a 7 vs a 13.

[forgotten]

New here. I will be filing for ch. 13. If I own a car paid off worth $10k, and we buy a car worth $5000 (to replace my husbands with 200k miles on it) with our tax refund first...will that make us owe $5000 more to the c/c companies since we will be $5000 over the $10000 exemption on cars? Or no, because it is ch.13 and not 7?

In a 13 creditors must receive as much as they would in a chapter 7 liquidation.

In a 13 you will pay all of your disposable income in to the plan.
If you are $5000 over your vehicle exemption (and can't cover it with some type of wildcard exemption) then your plan will need to propose you pay back at least $5000 in the plan.

So... example:
If your DMI is $200/mo @ 60 months = $12,000 - being over your exemptions by $5000 is not a problem since you are paying back $12k.

If your DMI is $50/mo @ 60 months = $3,000 - Not enough to cover what you are over on exemptions, you would need to propose a plan paying back at least $84/mo.

[worriedmom]

Forgotten: We are negative by means test, but still could swing an $100 (total) month payment to unsecured creditors. Problem is we have about $900/month coming out of paychecks from 401k loans and don't know how they will look at that?? After payroll deductions, our family of 6 nets about $3200 before bills. No way our car will make it another 2 years even, but don't want to make our ch.13 last 5 years if it can last 3.

[Depressed]

I asked in another thread, but didn't get an answer. If you need to buy a car while under a Chapter 13 plan can you? If so are there limits to which you can spend?

[forgotten]

I asked in another thread, but didn't get an answer. If you need to buy a car while under a Chapter 13 plan can you? If so are there limits to which you can spend?

Yes. You would need court approval to incur additional debt and find a lender willing to finance you while in an active chapter 13. Expect a very high interest rate.

The monthly payment would need to be under IRS limits, and once agian, subject to court approval.