Will you just pay the late payments,(ie mortgage and auto) and credit card debt to him or her?Will you still make your regular payments auto and mortgage payments to the finance company or the trustee?
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You can do it however you want, to a certian degree.
For late house payments, usually you pay the trustee to make the late payments, and you continue to pay the regular monthly mortgage directly.
You will stop making any direct payments to unsecured debts (i.e. credit cards).
As for the car, assuming you don't do a cramdown, then you do it the same way as a house. -
I assume if you a cramdown, you pay the secured portion after cramdown thru the plan? (I've wondered about that...)Most of my information is from personal experience or HOURS and HOURS of online research. When you're searching online, keep in mind there is no guarantee that the info is completely up to date, and your situation is unique from anyone else's. Do your homework, and consult with an attorney so you can make an informed decision.Comment
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Yes, if you do a cram down, then you only pay the trustee for the car, and the trustee turns around and makes the full cramdown payment to the car company.
A cram down works like this.
You own a car "Z" that has a market value of $10,000, but you owe $15,000. Let's also assume you have 4 years left on payments and your payments at 9% interest, thus, your payment would be $373.28 per month. Now, lets say you do a cram down at the current market value of the car at $10,000 at 7% interest (even in a cram down, the car company is entitled to interst). You would pay to the trustee $308.77 per month for 36 months (the length of the plan). At then end of the 36 month chapter 13 plan, your car would be paid off.Comment
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Originally posted by HHM
FYI...Under new law (Oct 17) the car has to be 3 years or older to be able to cramdown for anyone interested.Comment
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Yeah, the time of the automobile cramdown has essentially come to an end under the new law.Originally posted by hhou812hh
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