With less than a week to our confirmation hearing (which is Wednesday), we received in the mail an objection from Ford on the cramdown payment amount.
Cutting through all the legaleese on the objection paperwork, Ford is basically saying that our plan "fails to provide for the present value of FMCC;s secured claim by failing to provide the proper formula discount rate in conformance with 11 U.S.C. 1325(a)(5)(B)(ii) and Till v. SCS Credit Corp., 124 S. Ct. 1951 (2004)....blah blah blah...prime interest rate increased....blah blah blah.
We are stating replacement value of the car @ $5855, Ford is stating replacement retail value @ $8695. Ford is using EXCELLENT condition of the car as KBB definition.
FMCC is asking for the court to adjust the national prime rate interest of 8.25% upward 2% points as a result of the 2 factors which demonstrate a potential default by the Debtor (each risk factor---a: rapidly depreciating asset and b: the repayment over a period of time that extends approximately 35 months beyond the original terms of the contract and as a consequence exposes FMCC to additional risk of default).
The monetary amount per month that Ford wants an increase? $60.00
I am emailing our attorney right now to point out that the car does NOT meet KBB definition of EXCELLENT condition in that it HAS been in an accident and has had paint and body work. The car in question is NOT in the 5% group of cars that end up in this category.
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No real questions, but I know people read and learn from this forum, so I wanted to put this experience out there. I will update as things progress.
-sue
Cutting through all the legaleese on the objection paperwork, Ford is basically saying that our plan "fails to provide for the present value of FMCC;s secured claim by failing to provide the proper formula discount rate in conformance with 11 U.S.C. 1325(a)(5)(B)(ii) and Till v. SCS Credit Corp., 124 S. Ct. 1951 (2004)....blah blah blah...prime interest rate increased....blah blah blah.
We are stating replacement value of the car @ $5855, Ford is stating replacement retail value @ $8695. Ford is using EXCELLENT condition of the car as KBB definition.
FMCC is asking for the court to adjust the national prime rate interest of 8.25% upward 2% points as a result of the 2 factors which demonstrate a potential default by the Debtor (each risk factor---a: rapidly depreciating asset and b: the repayment over a period of time that extends approximately 35 months beyond the original terms of the contract and as a consequence exposes FMCC to additional risk of default).
The monetary amount per month that Ford wants an increase? $60.00
I am emailing our attorney right now to point out that the car does NOT meet KBB definition of EXCELLENT condition in that it HAS been in an accident and has had paint and body work. The car in question is NOT in the 5% group of cars that end up in this category.
****************
No real questions, but I know people read and learn from this forum, so I wanted to put this experience out there. I will update as things progress.
-sue
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