Car dealer objected to my Chapter 13 plan

[txeagleair]

Two days to my 341 meeting and I decided to check PACER. Found an objection from the dealer who has my car loan. I am not sure what this means. Perhaps I will have to pay more to them in the Chapter 13?? I am hoping the plan will get approved on Thursday. This is filed under the new laws and will be sixty month payment. I am thinking that the Trustee will need to distribute more to the car dealer than anybody else first. Anybody had any similar experiences dealing with auto loans??

[SinkingFast]

I understand what the Lender is arguing.

You currently pay $404.45/month in payments with your term to expire in August of 2006.

Since you're toward the end of your contract on the loan, the bulk of every monthly payment is principal now, not interest.

The Court has taken the remaining principal balance, applied a rate of 6% intrerest, and then figured the payments out over 60 months. Making your car loan mature in 2011 rather than next year as it normally would have.

There's also an arguement that the 6% interest rate being allowed by the Court is not enough to allow for potential loss risk that might arise and have to be absorbed by the Lender.

Are you in arrears on your car payments?? Is that why the auto loan is being included in the Ch 13 plan?? Or did your attny simply decide to include it to "consolidate" all your debt payments into one tidy payment/month?

It could be simply a matter of the Trustee restructuring your debt pay-out so the auto loan Lender get's the remainder of their money in a timely fashion. It is not uncommon for secureds to get paid out first in a Ch 13 payment plan. Then other Creditors, unsecureds, are moved up and take the secured loan's spot in succession.

[txeagleair]

I am currently about three months behind in my car loan. But I am starting to believe that despite all the legal jargon, it will be just a matter of adjusting the payment plan so that the car dealer gets more in the first few months of the Chapter 13 payment plan.