Car Payments

[slickwilly95991]

I'm a little stuck. Purchased a car about 8 months before bankruptcy. I want to keep it. Not behind on payments. The loan is 6 years and I qualify for a 36 month repayment plan. I was told that since the car was purchased within the last 30 months, I have to pay the entire thing off in the plan. I can't pay a 6 year loan in 36 months and I sure do not want to prolong to a 60 month. Not sure I could pay the car off in 60 months. I also have some back mortgage payments that I am making in the plan.

Can I go ahead and pay it outside of the plan as a long term secured obligation, like the house? Like I said, it's a 6 year loan and I only have to be involved with plan payments for 36 months.

[BlessedOne]

We had the same scenario. We had a 6 year loan but our plan is for 60 months. We bought our car 3 months before we filed. I believe you can pay the car outside of the plan if you are current on the payments. We were delinquent by a month when we filed. The good thing for us is we are paying off our 6 year loan in 5 years.

[klux]

This is a quote from my attorney, this is in Wisconsin.
"If a vehicle loan exists at the time the Ch.13 is filed, it must be paid through
the Chapter 13 Plan. If the loan length is longer than the Plan length the
Plan may provide for the Trustee to make the regular monthly payments to the
lender. If the loan length is less than the Plan length the entire loan amount
gets paid through the Plan, with interest. "

Hope that helps

[lrprn]

[QUOTE=slickwilly95991;111468]

Can I go ahead and pay it outside of the plan as a long term secured obligation, like the house? Like I said, it's a 6 year loan and I only have to be involved with plan payments for 36 months.

Whether you can pay the car over 6 years or not isn't up to you - it's often determined by state and district bk case guidelines that Ch 13 filers are forced to follow.

What does your lawyer have to say about this?