selling nonexempt car?

[systemslt]

i want to get rid of a nonexempt car. the value of it is $500 in the confirmed chap 13 plan. i want to use the money to pay down the amount i owe the plan.

can this be done?


i passed the means test.
36 month chap 13 plan.

paying for $10000 in nonexempt property, $2000 back mortgage, $2500 attorneys fees.

[lrprn]

i want to get rid of a nonexempt car. the value of it is $500 in the confirmed chap 13 plan. i want to use the money to pay down the amount i owe the plan. can this be done?

First because the car is an asset of your estate, you must have your trustee's permission to sell it even if its value is low.

Second, unless you are in a 100% payback plan (are you?), any small amount extra (and $500 is a very small amount) that you pay into your plan just increases the amount of money your creditors will get. It won't lower your monthly Ch 13 payment or decrease the number of payments you have to make.

So the answer to your question, "Can I sell the car?", is yes. But unless you are in a 100% payback plan, it's not going to decrease your Ch 13 payment or reduce the amount you owe. Sorry the news isn't what you hoped.

[systemslt]

First because the car is an asset of your estate, you must have your trustee's permission to sell it even if its value is low.

Second, unless you are in a 100% payback plan (are you?), any small amount extra (and $500 is a very small amount) that you pay into your plan just increases the amount of money your creditors will get. It won't lower your monthly Ch 13 payment or decrease the number of payments you have to make.

So the answer to your question, "Can I sell the car?", is yes. But unless you are in a 100% payback plan, it's not going to decrease your Ch 13 payment or reduce the amount you owe. Sorry the news isn't what you hoped.

no 100% payback.

thanks for the answer to my question.