How will this be structured?

[jwbbx]

I am filing a 13, the attorney has all my info but has not gotten back to me yet with a plan. That should be happening within the next couple of weeks.

My question is this - I have a car note that is current and I will be paying on outside of the plan. If we file in July as I anticipate, the note will have 26 more payments and then be done.

Will the plan we propose say 26 payments of X and 34 payments of X + Old Car Payment? Is that how it's done? I think if that's the case I'll be approaching a 100% payback plan and that will make me happy.

[ichb]

If you are paying your auto-loan outside the plan, you will continue to send the payments to the lender. Your plan payment will be separate from that.

[jwbbx]

ichb,

That was not my question.

I want to know if anyone has seen a two tiered plan, X for 26 months, then Y for 34 months with Y being the X payment PLUS what I used to pay on the car note.

[dovette7]

That is how it was for our 401k loan payment. We had 36 months left on it when we filed and paid it outside of plan. Starting on the 37th month, our bankruptcy payment "stepped up" in the amount of what we were paying our 401k loan each month. It could work the same with your car.
But I've learned that it completley depends on your trustee and what they want.

[jwbbx]

Dovette,

Was that actually spelled out in the plan you filed? Or was it a side agreement of some kind?

[kmb]

We are actually paying two car loans outside of our plan, both of which will be paid off during the course of our Chp 13 and the trustee did not ask that the extra money be put into our plan once they are paid off. Our payment was set and "hopefully" the only change that we will encounter is we have two double payments at the very end that the trustee was willing to allow since he knew we would have more expendable income at that point and it allowed us to keep our current payments a little lower.

[dovette7]

Ours was spelled out in our plan. It stated that starting on Feb 2010 payment our payment would increase the amount we were paying for our 401K loan. Attorney called it a "step up" in plan and that it is common.
Hope that helps some

[Flamingo]

I am filing a 13, the attorney has all my info but has not gotten back to me yet with a plan. That should be happening within the next couple of weeks.

My question is this - I have a car note that is current and I will be paying on outside of the plan. If we file in July as I anticipate, the note will have 26 more payments and then be done.

Will the plan we propose say 26 payments of X and 34 payments of X + Old Car Payment? Is that how it's done? I think if that's the case I'll be approaching a 100% payback plan and that will make me happy.

It all depends on your Trustee; what usually occurs is that in a separate section of your Plan will be listed the items that will be paid outside your Plan (i.e., car payment, mortgage payment, 401(k) loan). We paid our first and second mortgages outside the plan and it stated that we were to continue to pay on them and they were listed in the Plan as being paid outside the Plan and stated a zero balance. So what will probably occur with your car payment is that you will just continue to pay it as usual through your Plan at the same amount you were paying prior to filing and it will be paid off after the 26th payment. I also had a small 401(k) loan which was listed the same way with the payment to continue as was being done via payroll and paid outside the plan.

[jwbbx]

My question was really not about how things are paid outside of the plan, I think I understand that. I guess I was unclear in my post. Mine had to do with payments that finish during the 60 months and what happens to the extra disposable income.

Dovette7, Your answer about the 'step up' is exactly what I was hoping for - thanks for the term too! I was hoping we could structure a plan like that instead of trying to average things over the full 60 months. The car note is a fairly large payment (600/month) and I'm pretty certain they're not going to let me get away with not taking that amount into account later in the plan. KMB I'm glad for you but don't think mine will be that smooth as it's in the period before the 36 month point.

My worry was that they'd insist on paying it inside of the plan, so it would be averaged out and all that does is add a 4.5% Trustee commission to the total.

[CindyLou]

Question: How long ago did you buy the car??

[holding on]

Jwbbx,

I have a car loan that will be payed up in 4 months. I pay it outside of the plan, but yes, there is an accounting for it as far as the plan payment. It is documented in the plan that I pay 800 for the period of 4 months, then 1000 for the next 56. The extra is of course the disposable income increase due to not paying car note anymore.

All my secured (accept arrearage) is payed outside the plan. I'm not sure about the ways you can be forced into putting those types of payment in the plan.

[jwbbx]

CindyLou,
I bought the car in February of 2005.