cars in ch 13 - confused

[sahaley]

My husband and I recently filed ch 13 (not yet confirmed) - our plan includes both of our vehicles, taxes owed (under $1000), and lots of cc debt. Our payment is just over 500/month and a fairly tight budget as I am sure many of you have (family of 5 here). Our % to unsecured says 5.66% on the data center site. Anyway - I guess I am not sure what happens to our cars in the end - do we have to pay what is left when our plan is over (60 months). Our current payments (not in the bk plan) include our mortgage, home equity and payment to trustee and other reg bills (cable etc). Just wondered for clarification - this is all so new. Thanks.

[rrockinggramma]

were your vehicles crammed down in your plan to FMV? Is the loan on them longer than 910 days old? You need to know this. If they are crammed down in your plan, then your plan pays them off. If they are not, then you will have to pick up the payments at the end of the plan until they are paid off.

[sahaley]

we had about a year left on our loans (out of 60 month term) - I am not sure what fmv is? or crammed down? it says on my paperwork there is a $20 fixed payment per month.

[lrprn]

we had about a year left on our loans (out of 60 month term) - I am not sure what fmv is? or crammed down? it says on my paperwork there is a $20 fixed payment per month.

With so little time left on your loans, I'm betting at the end of your plan your cars will be paid off in full. Ask your lawyer to confirm this.

Also FMV = full market value.

And "crammed down" means that if your cars were purchased more than 910 days before you filed Ch 13, then the car loans can be "crammed down" to their market resale value. Whatever you may have owed on your loan over that is wiped out - you don't have to pay whatever you owed over current market value.

If your cars were purchased less than 910 days before you filed, then you will owe whatever is left on the loans. No "cram down" is allowed.