Payback question

[fslady]

I'm meeting with the attorney Thursday to make sure everything is ready for filing Ch 13. He said that my car payment will also be rolled into the filing and that the trustee will make the payments - which are not late and are drafted from my checking account at the same bank that made the car loan. Is this normal???? I really don't mind because it will be one less individual payment to make.
The attorney said that the trustee usually accepts his recommendations for the payment schedule which sounds good or at least hopeful. I know that I'll be on a tight budget for 5 years but at the end of the 5 years - the ccs will be paid off

[lrprn]

I'm meeting with the attorney Thursday to make sure everything is ready for filing Ch 13. He said that my car payment will also be rolled into the filing and that the trustee will make the payments - which are not late and are drafted from my checking account at the same bank that made the car loan. Is this normal????

Our Ch 13 trustee makes our car payments within our plan too, but he doesn't pay them directly out of our checking account - he disburses them out of our monthly payment. What your lawyer is proposing is a very odd setup. Are you certain your trustee is authorizing the car payment out of your personal checking account? Maybe I misunderstood what you posted??

The attorney said that the trustee usually accepts his recommendations for the payment schedule which sounds good or at least hopeful.

Typically your monthly payment is set up to be paid on the same day of the month that you file. If your trustee is willing to adjust that to a date that fits your money flow better, that's great! Hopefully your lawyer has already discussed this with you but just in case....remember you MUST pay your first payment to the trustee within 30 days of filing. If your payment is set up to be paid automatically out of your paycheck and it isn't quite ready to go yet, you still must pay by check or money order inside that 30 day window.

I know that I'll be on a tight budget for 5 years but at the end of the 5 years - the ccs will be paid off

It is a wonderful feeling to realize that now there is hope where there was none before. Good for you!

[fslady]

I was rather garbled in the message about the car payment. Right now it is drafted out of my checking account but it looks like the trustee will take over paying it from my monthly payment and the draft will stop. I'll just have to make sure that the bank stops the draft instead of getting 2 payments a month. Right now in addition to the cc payments - the trustee will be getting money to pay the attorney's fees, car payment, and ParentPlus student loan. I will definitely have fewer bills to pay each month so I guess that's a good thing.
Thanks for pointing out the 1st payment within 30 days detail. I am paid once a month, on the last working day of the month and the attorney said the trustee will want to garnish the salary. So the payment date will be important. I'll be sure to bring that up with the attorney when we meet later this week.

[buckaroo]

just starting to think why am i in a chapter 13 plan, am 73 years old, retired living on social security of approximately 18000 dollars a year and a retired mancome of 10000 per year giving me total income of under 30,000 dollars, have not secured debts, unsecured approx 50,000 dollars attorney put me in a 36 month payback at $569 per month, no assets whatsoever