Auto Loans, and how does it work in 13

[NowImDownInIt]

My car will be paid off a year earlier inside my 36 month plan at a MUCH lower interest rate. So that, I like.

[dovette7]

If the car loan is OUTSIDE the plan, then what happens after it is paid off in full? For example, if you were going into a 5 year plan, and you only have 2 years left on your auto loan ($400 a month), what happens after the 2 years? Does your plan payment then get re-calculated and goes up $400, so your creditor's get 400 more every month for the last 3 years of the plan? Or do you just have 400 more a month to spend how you like?

We had a 401k Loan paying outside of plan. The Trustee decided that when that loan was paid off our plan would then "step up" and we would pay that amount to him. So in our case after 36 months, our plan increases the amount that we were paying the 401k loan. I would think it may be the same for a car.

[lindertaz]

Question. My attorney gave me the same advice but to put me over the disposable income into Chapter 7. Having difficulty getting anyone to finance without putting $ down or a 20+% interest rate. How did you get through this? Any advice would help!
Thanks

[Mark80]

Are you asking how I got the loan? There was a thread on here for places to try with bad credit so I applied at a few and got lucky. I didn't have to put any money down but my rate was a craptastic 14%. However I didn't care figuring I would be in a chapter 13 anyway, I could either pay a higher payment to for the car, or just take the difference I would of gotten on a cheaper loan and tossed it to the unsecured creditors during the life of the plan. Since I had X amount of disposable income I wanted to eat some of it up with a more reliable vehicle.

I got lucky though, my credit score was already on the way down, and I was starting to have my 30+ and 60+ missed payments reporting in. If I didn't run out at that moment and get whatever I could I would of been screwed.

Go to the auto thread on here there is a list of bad credit lenders, I don't even know which one worked for me though as it send out my request to local dealers and I got approved by a few. And I'm being financed by the dealers finance company, one that I would of normally gotten rejected by if I tried to do it directly!