Is there any advantage or reason why?

[SwimminUpStream]

We are not behind on our mtg or car pmt...never have been. Just those damn medical and cc bills.

Anyway, the lawyer had included our car pmt and mtg (can't cram down car) in the BK.

Is there any advantage to this? We have always had it deducted auto out of our account.

So, I am not sure why it is included. Can anyone shed some light?

[filingin08]

We bought our cars 6 or so months before filing. They are in our BK spread out over 60 mos, so on a month to month basis, the payments are less.

[SwimminUpStream]

Bought mine in Jan this year, so I already had 60 months and have paid on it since then, so no advantage for me. Pmts still the same in 13 as they were before...actually almost seems like will be paying more, since I have made pmts since 2/08 on it and my BK is for 60 months.

[AngelinaCatHub]

I can't help you out too much on 13 as I was 7. It would seem though that once the last payment of your car was made, your monthly payment would go down at that time. Ask your lawyer. I would keep track of the payment record that the mortgage holder will have on your car. 'Hub

[SwimminUpStream]

But why would someone include a mtg and car pmt in the Bk, when they are not having issues with those 2 items? Aren't you better off to leave them out and continue to pay as you have been?

[HHM]

When you say "include" do you mean that your attorney is simply listing these debts in yoru chapter 13 petition (which is required), or do you mean that you are paying the chapter 13 trustee your car and mortgage payment.

[woeisme]

It would seem though that once the last payment of your car was made, your monthly payment would go down at that time. Ask your lawyer. I would keep track of the payment record that the mortgage holder will have on your car. 'Hub

Unless they are in a 100% payback CH 13, this wouldn't be the case, because that extra money going to the car payment would become "disposable income" available to pay other debts, so the trustee would still take the money after car was paid off, the money would just go to a different creditor (probably unsecured) at that point.

In fact, I think the same thing happens if you have a car payment outside the plan, once the car is paid off, then the trustee payments go up because that expense is gone and now your disposable income is more. I know I've read about people who's payments have changed this way, so I really think it's all a wash, either way, the trustee gets the extra money once the car is paid off, whether it happens inside or outside the plan.

The only argument I've heard for paying creditors outside the plan is that the trustee no longer gets a cut from whatever his % is. This really makes no difference to you unless you are paying 0% to unsecured and want to get your secured % down, or if you are paying 100%, in which cases again, not paying the trustee's cut helps reduce your payoffs. If you are anywhere between the two extremes, the only advantage to paying outside the plan is in the case of you not completing your CH 13 BK plan, and then paying outside will allow you to have more paid off for when the automatic stay is lifted and creditors start lining up asking for their $ again.

[SwimminUpStream]

I am 100% to unsecured.

No, the lawyer had included my mtg and car pmt in the plan amount which is 3800-/mo for 60 months.

This is the lawyer that has screwed so much of my paperwork up, I do not have alot of faith in what he is doing, hence why I am asking the question here.

[woeisme]

If you are 100% payback to unsecured, then there is an advantage to paying your car and mortgage outside the plan. I don't know what your trustee percentage is, but whatever the amount, that will be extra you'll have to pay. In 100% payback, the only reason to put them in the plan is #1 if you are late on payments to them, they have to be in plan or #2 for the car only, if you can cram it down (which is not your case since you bought 6 months before filing) or if the trustee plans to change the interest rate on the car loan enough that it is cheaper paying him his percentage.