Attempting a 13.

[CB1207]

So I am attempting a 13 on my own, well with the help of NOLO and extensive research on the Inet.

Just a little background, from FY07 to FY08 I lost $15,000.00 per year income. This was a huge hit the monthly budget. Fell behind on the mortgage etc. I have no CC debt at all, and actually no discharge-able unsecured debt. I had attempted to MOD my mortgage to put the acreages on the back of my loan, but I had not been in the home long enough so the VA would not allow it. BK was my only hope to save my home( I have great terms and bought after the market tanked last year so I am not that far underwater.

So I filed and had my 341 meeting on Friday. Nothing really major, except the Trustee advised me to get an attorney, which I figured she would. She said this to everyone PRO SE 13 filers as they went up. The attorney's office for my auto finance company filed a petition of of appearance and also filed an objection. Adequate protection(was only 1 month behind), they wanted my to increase the interest rate 2+ prime, which I was not surprised. I had initially asked for 1+. And they objected to my value of the Truck. I am now amending my plan with these changes and increasing the value of my truck and including copies of both Kelley Blue Book and NADA values. Also, due to local law I will need to pay my mortgage through the plan.

One thing that came up where I am stuck, is she said I was "More than adequately protected. I included my mortgage for adequate protection but did not my car loan. I am not sure how to rectify this yet. I am still doing my research and though I would post here for some info.

I would also like to get some input from others that have gone through this process.

Thanks

[justbroke]

One thing that came up where I am stuck, is she said I was "More than adequately protected. I included my mortgage for adequate protection but did not my car loan. I am not sure how to rectify this yet. I am still doing my research and though I would post here for some info.

Welcome to the Forum.

Generally speaking, adequate protection defines a minimum amount of payments (usually monthly) that protect the lender from depreciation or other factors decreasing the value of the collateral securing the loan. In other words... enough money to cover the depreciation. Also, generally speaking, making a regular monthly payment is "adequate protection".

Also, proposing payments through your Plan is generally considered "adequate protection" as well, so long as your making those payments under your Plan.

Car creditors are the worse, and they will complain about everything. First, when did you buy your car? If it was more than 910 days ago (2.5 years), then you should be table to cramdown the value to the bluebook (NADA). Otherwise, the car creditor can and will complain about confirming your plan. You would have to pay them the current value of your outsstanding balance, and pay the Till Rate plus 1-3 percentage points in interest. The Till Rate for June 2009 is 4.75% (http://www.bankruptcykansas.info/200...y-kansas-rate/). That number from Kansas already includes 1.5% (because that's what they use in Kansas), so the real prime rate is 3.25%. So you'd add 2% to that, and you would propose to pay 5.25% or the contract rate, whichever is less.

One thing I recommend is calling the car lender's attorney directly and make sure you talk to them. Offer them the Till Rate (5.25%) or the current contract rate, whatever is less. If you have a so-called "910 vehicle", you'll also need to tell them you'll be paying the claim as submitted over the term of the Plan.

Again, I think the car problem (adequate protection) will only be because of whether the car is a "910 vehicle" or the interest rate you used.

[CB1207]

I am just not sure what the Trustee meant by "More than adequate protection" and if there is anything I need to file. I have had the car more the 2.5 years, but refinanced with another lender just over a year ago. I am thinking I may be able to include the current value of the car as secured in the plan, and the rest as unsecured. I had proposed 4.25% and they are asking for 5.25% which is not unreasonable. They are asking more in value as well. I hope if I meet them half way it will be the end of it. I wonder though, since it has not been 910 days since I have had this loan, if the lender agrees to the plan, will it still be confirmed or would the trustee/court step in? The sad part is, if I surrendered the vehicle the auction value is much less. They would actually get more money be allowing me to pay in the plan. Right now it is hard to move used Dodge Trucks since you can get new ones so cheap.

[justbroke]

I am just not sure what the Trustee meant by "More than adequate protection" and if there is anything I need to file.

Nothing. I think that statement was just for the "record".

I have had the car more the 2.5 years, but refinanced with another lender just over a year ago. I am thinking I may be able to include the current value of the car as secured in the plan, and the rest as unsecured. I had proposed 4.25% and they are asking for 5.25% which is not unreasonable.

Okay, so not only is it not what we call a "910 vehicle", it's also not a purchase money loan! Since you refinanced it, they really can't complain except to your valuation. I would leave it at 5.25% (which seems to be the current Till Rate anyhow).

Now as for bi-furcating their claim, you can do so. usually though, you need to do this by Motion. (A Motion to Determine Secured Status.) That way, you can have the Judge determine the current value versus what the total due on the claim and bi-furcate it into an unsecure and secure claim.

They are asking more in value as well. I hope if I meet them half way it will be the end of it. I wonder though, since it has not been 910 days since I have had this loan, if the lender agrees to the plan, will it still be confirmed or would the trustee/court step in?

Dont' even meet them half way. LOL. Find the NADA value for resale clean. Then make deductions for condition. You may need to bring it in to get a quote for needed repairs. Enter those "quotes" as evidence to show the value isn't exactly what the NADA book shows.

The sad part is, if I surrendered the vehicle the auction value is much less. They would actually get more money be allowing me to pay in the plan. Right now it is hard to move used Dodge Trucks since you can get new ones so cheap.

Understood!

[CB1207]

Good info thanks, I didn't realize the refi was not considered "purchase money". I think I will make those changes then and up the value I originally offered to what KBB and NADA have listed. Even ff it costs me a few dollars more month, it will be worth it since this should be considered a 100% plan. I a not discharging any unsecured debtors.

Should I file an answer to my auto lender objection or should submitting an amended plan be sufficient?

[justbroke]

Should I file an answer to my auto lender objection or should submitting an amended plan be sufficient?

You can do both. However, I would talk directly with them first to negotiate.

[CB1207]

Thanks, it may be a little tricky for me to do that for reasons I would rather not say. I would like to keep this through the courts if at all possible. Can you recommend a good online form to use to file an answer to the objection. The online forms site I used to file did not have one?