secured loan for swimming pool

[AtWitsEnd]

We took out a loan in 2005 for an above ground swimming pool. We put $3000 down and financed the rest. We owe a balance of around $9200 with a payment of $159/mo. We were never late and am making timely payments. Just for clarification, in 2005 we actually had money and were doing pretty good.

After meeting with the paralegal and filling out the forms for chapter 13, she stated the swimming pool was a luxury item and would not be included in BK..and also that the monthly payment couldn't be included in our monthly expenses. She said we'd just have to come up with the money to pay it every month however we could.

We haven't filed yet, but I would like to know if anyone knows if this is correct. We are in Pennsylvania.

[rrockinggramma]

to me, a debt is a debt is a debt. I thought you couldn't "pick and choose" the debts to list. IMO, it should be listed as secured and let the pool company file a claim and then go from there. I would get another opinion, from a lawyer, not a paralegal. I don't think she is right.

[HHM]

It has to be listed...but what the paralegal is saying is that the pool probably cannot be paid through the chapter 13 plan, and you cannot count the $159 monthly payment as an expense in your budget to determine your disposible income.

What that means is, you will have to "reasonably" pad your budget in order to have enough money to continue making the monthly payments.

[jnjw]

My husband and I just filed our Chapter 13 today. We also financed our above ground pool. In looking over the paperwork, our attorney listed it as a secured debt (which it is) and was included in our payments outside of the plan, but yes, it was listed as one of our monthly expenses. Now, whether that will fly with the trustee or not, I have no clue, but I'm assuming my atty knows what he's doing or he would have not listed it and told us why not?

[AtWitsEnd]

Thats exactly what she is saying HHM, but is that because it is secured? Its a debt made almost 4 years ago. I just don't get the difference between that and a credit card from a jeweler that is obviously luxury items too.

[AtWitsEnd]

Yes, thats exactly how I would think it would work. Its listed as secured, which it is, and I'd like to keep paying it outside the plan. I would think my monthly payment would be included as such.

[AtWitsEnd]

My husband and I just filed our Chapter 13 today. We also financed our above ground pool. In looking over the paperwork, our attorney listed it as a secured debt (which it is) and was included in our payments outside of the plan, but yes, it was listed as one of our monthly expenses. Now, whether that will fly with the trustee or not, I have no clue, but I'm assuming my atty knows what he's doing or he would have not listed it and told us why not?

Thats exactly how I would think it should be. She listed it as a secured debt, but I do plan on paying it outside the plan. It is reasonalbe to think it would be a monthly expense.

[krielly]

We have a camper payment of $258/mo for our 5th wheel. This was listed as a secured debt, and we are paying outside of the plan. We filed old law, however, so maybe it makes a difference. I'm not up on the new law......The old law was 3-5 years. Because we have the camper, and pay a fee to be seasonal at a campground (3500/yr), we had to go the full 5 years to keep both, but the new law is probably different.....

[HHM]

Honestly, I don't see why this would not be considered normal. Especially given the age of the debts. It's not like you bought the pool 6 months ago and turned around and filed BK.