CH 13 Answers

[crookedoak]

Please help me with some questions before I contact my attorney
I am very confused, and do know that I should see the attorney, and will but need some peace of mind beforehand.

Filed Ch 13 Oct 04
341 Date Dec 20, 2004

Initially when filed the 3 major things to keep were 2 vehicles, and to continue living in house that we were renting
The firm listed $25,000 as a secure creditor for my monthly rental.
The 2 banks cars were financed with were listed as secured for approx total of 16,000 combined .

my monthly payments have been made thru payroll deduction since Nov 04, starting as 1230 month, then dropping to 216 bi weekly after we moved from original home.

I am trying to figure out when this can be discharged. Do I only payback what is listed as Secured, or di pay back Unsecured also

Vehicles are listed as Secured for total claim of $16,500
They are also listed as Unsecured total owed $10,000

I know tht attorney handled something with agreeing that I would only pay the 16000 (FMV) for them

How much do I owe? when can I get out of this ?

Can I get out early ?




Priority Secured Unsecured Other
Claimed $ 5,379.96 $ 16,450.00 $10,526.02 $0.00
Scheduled $20,000.00 $25,319.00 $10,879.89 $0.00
Principal Paid $5,688.86 $5,821.38 $0.00 $0.00
Principal Owed $0.00 $ 10,628.62 $ 421.04 $0.00
Principal Due $2,088.10 $0.00 $ .00 $0.00
Interest Paid $0.00 $2,434.78 $0.00 $0.00
Interest Due $0.00 $0.00 $0.00 $0.00
Monthly Pay $1,214.80 $313.78 $0.00 $0.00

[HHM]

Your attorney should have gone over at least some of this with you. Your post is a little confusing, but I will give it go.

Chapter 13's last for a minimum of 60 months unless your chapter 13 plan payments can pay off 100% of your "unsecured" debt before that time. However, I do not believe the unsecured portion of otherwise secured claims count toward your total unsecured debt.

The difference between the secured and unsecured claim on the cars has to do with the difference between what you owe on the cars, and how much they are worth at FMV. And your attorney is doing what is known as a cram down. Reducing the amount you owe on the cars to what their present-day market value is. So long as you stick with the plan, then that is all you will pay.

What's not clear is why you are in BK in the first place...the numbers you listed don't seem unmanageable, were you behind on payments? What is the background?

[crookedoak]

It started with living off of overtime in 2002. Overtime got cut, income dropped. I had 2 surgeries which dropped income, and wife also had 1 surgery.
My father died in May 04 caused some unforseen expenses,
3 months behind on vehicles $2400, 2months behind on rent $1800, 2-3 months behind on utilities, $$$, repo men at door every day, util shut offs, etc. piling up cc bills but nothing major.

Filed to stop repo and eviction.

[crookedoak]

Can I get out earlier

Heres what I am upo against now.
1 vehicle is on its way down, the other is manageable,
need to find ne place to live, current landlords want to sell

can i make extra payments to get out earlier

[HHM]

can i make extra payments to get out earlier

Does your plan already provide for paying your unsecured debt 100%, if so, then yes, if not, then no. If the plan does not pay 100% to unsecureds, then extra payments would go to up that percentage.

[crookedoak]

NDC shows unsecured at 4%
do I pay them even if they did not file a claim ?

[HHM]

If they don't file a claim, then they don't get paid and their debt is discharged. But I wouldn't count on that.

If your only paying 4%, then your more than likely in it for 60 months.

[dac67]

Chapter 13 can be 36 months if you fall below the medium income bracket.
Ours is 36 months at 160.00, at 7% payback.