Well, it's over and we are keeping the truck. Based on the BAD advice of attorney #1, I included the truck in the BK. I signed a personal guarantee for the loan but could have left it out because it was a liability of our corporation (as I understand it now). We could have just made the payments as normal with the corporate funds.
Attorney #2 negiotated with the finance company and we got a royal screwing. The interest rate is close to the original rate but being paid over 60 months now instead of the original 24, which is increasing the total interest by 7K.
Yes, it lowered the monthly payment for the truck from $1600 to about $800, but the extra interest is a killer (and just generally ticks me off).
This truck will not last 60 months, so we will eventually be facing this mess again. The worst part is the truck must be paid with priority the same as or higher than all other secured claims (ie my house). So when this truck dies, I may still be in a mess and lose my house.
In addition, reading the order, we are paying twice for the interest that accrued between the time the refi note was signed and the date I filed. Once for the original payment that was due 3 days before I filed, and again in the negioated balance on the note.
Here's the final kicker....I was not given the opportunity to provide any input to attorney #2 when they were negiotating with the finance company attorney....they worked out the whole deal and then told me about it....they didn't know it was a refi and that we had made payments for 30 months prior to the refi....my own attorney thought I was trying to pull a fast one.
All the claims have come in except the IRS. They filed a claim, but it was understated, so they will have to correct it.
We should be submitting a new plan in the next week, I sure hope the attorney doesn't submit it without allowing me to review it first.
Attorney #2 negiotated with the finance company and we got a royal screwing. The interest rate is close to the original rate but being paid over 60 months now instead of the original 24, which is increasing the total interest by 7K.
Yes, it lowered the monthly payment for the truck from $1600 to about $800, but the extra interest is a killer (and just generally ticks me off).
This truck will not last 60 months, so we will eventually be facing this mess again. The worst part is the truck must be paid with priority the same as or higher than all other secured claims (ie my house). So when this truck dies, I may still be in a mess and lose my house.
In addition, reading the order, we are paying twice for the interest that accrued between the time the refi note was signed and the date I filed. Once for the original payment that was due 3 days before I filed, and again in the negioated balance on the note.
Here's the final kicker....I was not given the opportunity to provide any input to attorney #2 when they were negiotating with the finance company attorney....they worked out the whole deal and then told me about it....they didn't know it was a refi and that we had made payments for 30 months prior to the refi....my own attorney thought I was trying to pull a fast one.
All the claims have come in except the IRS. They filed a claim, but it was understated, so they will have to correct it.
We should be submitting a new plan in the next week, I sure hope the attorney doesn't submit it without allowing me to review it first.
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