Can we keep car payment out of plan?

[sassiebaz]

I didn't ask this at our consultation. If we are not doing a cram down, can we keep our car payment outside of the plan? The only thing we will most likely be paying is our Attorney and Trustee fee's. I'm not sure what would be the benefit to that if any, but it just crossed my mind so I though I'd ask.....thanks!

[optimistic1]

Yes you can, be sure that you stay current on it though.

[6ftladycop]

The Cadillac Man Did Me In

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I am so mad with myself, but being unfamiliar with the process and having filed a Chapter 7 two years ago, well....I guess I will have to live with what has happen to me. For the last two years, I have been able to pay my car note on time with no problems to GM. I was leasing a car and had A-1 credit in 05 when I got it, however my children being diagnosed with autism caused our family major financial problems and I had to file.

Since that time, I have been saving, watching my pennies, not being late on any bill and since I had nothing to pay except rent, car note, car insurance, light, gas and phone, I paid these on time and really thought I was doing good at rebuilding my credit and my credit score. Last year when I heard that the car companies were going under, I was under the impression that researching and checking to see if this problem would be of a benefit to me as an American person, imagine my surprise when my lease was up and I had to return my vehicle to Cadillac and was told that nobody was leasing a lot anymore because the car companies had lost loads of money on leases. Of course I believed this because this was GM and the Cadillac dealer. Why would they try and use me since I had never missed my car note.

But of course them about to go under(GM) and helping people do not go hand in hand. I should have known better. Well, let me tell you guys what happen to me and maybe I am in the toilet and maybe I can do something to help myself as this issue is only 2 weeks old. I returned my Cadillac leased vehicle to Cadillac in Chicago two weeks ago. While in the dealership, I came across the nicest or what appeared to be salesman and he insisted that they were working on trying to keep me from being without a car since leasing was not in the cards as they said. I did the paperwork to return the lease and waited until they "crunched some numbers" as the salesman said.

After being in the dealership all day(8)hrs and many phone calls and cups of coffee later, I was sold a 2006 Cadillac with 8772 miles on it. The car cost 25,000 dollars. At first since my car turned in was a 2005 with 38,000 miles on it, I thought I was getting a pretty fair deal. But the interest on the car was unbelievable. Not only that, but the salesman told me that GM would not finance me again for another lease, but if I was able to buy a used car, how come they could not finance me for that?

Also, my old interest rate was 10 percent and of course I did not expect that again, but I never thought I would end up with 20 percent interest rate. Is this what bankruptcy filers should expect from car dealerships. This Cadillac dealership has a good rating with BBB. Nothing but rave reviews. However I still feel I was ripped off unless you guys can convince me that there was no other way. Also, by the time the finance guy at Cadillac came back in to talk to me, he also told me that Capital One was the only people who would take the deal and since I know that I was in to them for 8,000 dollars, somehow I just know that they tacked that amount on to my car deal. I can not prove it, but I know it deep down in my gut. So two things will happen here since the final amount I pay back over 72 months in interest is more than the car is worth, I am either going to the local investigative television stations and have them check my story for the legalities involved, or I will listen to you guys if you say that in these 2 weeks and I.m not satisified with this deal, there is absoultely nothing I can do. Somebody please talk to me. I am stressed out. They would not even make the car certified used, just pre-owned used and the difference between those two is the warranty. That was the most inportant thing I needed.

[optimistic1]

The Cadillac Man Did Me In

Im sorry but what does that have to do with the thread topic?

[chucksherm]

I didn't ask this at our consultation. If we are not doing a cram down, can we keep our car payment outside of the plan? The only thing we will most likely be paying is our Attorney and Trustee fee's. I'm not sure what would be the benefit to that if any, but it just crossed my mind so I though I'd ask.....thanks!

We filed a 13 last July and we kept my car payment and my wife's lease payment outside the plan. Some things must be paid through the plan and some things are optional. The cars were optional. Hope this helps.
Chuck

[sassiebaz]

Ok, if you aren't satisfied with the deal, why did you sign? Also, why did go back to the Cadillac dealership? Why not go to Chrysler or Dodge? All American made, but you could've financed a $12K vehicle and could have atleast been at an affordable payment. If your question is about how your BK affected your interest rates.....well I guess I don't really have an answer other than we got great rates after we filed chapter 7. I'm also a little confused about what you are really asking! Did you get screwed by the dealership? Probably, but you could've walked outta there! We're upside down in our SUV, but we also knew it was gonna happen. We liked the vehicle when we bought it and knew it would work for us. The only other thing I can think of is that maybe that particular dealership didn't have in-house secondary financing? Do you and did you know your credit score prior to going down there? Lot's of questions.......but off topic from my original question....but that's alright!

[Trixie007]

The Cadillac Man Did Me In

This is the fifth place she has posted this... two original threads, and now 3 jacked threads. I don't think anyone has the answer she wants to hear.

To the OP: the benefit I can see is that you wouldn't be paying the Trustee's percentage on the car payment if it's outside the plan.

[Flamingo]

To the OP - yes you can pay your car payment outside of your plan if you are not eligible to have the vehicle crammed. The other posters gave you great information as to why. Also, as stated, never be late with that payment. If you have problems in making the payment during your Plan, or with any other bill, contact your attorney right away.

To SixFtLadyCop - your mistake was not doing your homework before you went to the dealership. You should have investigated other options/vehicles before you set foot in the Caddy dealership to return the leased vehicle. They put the pressure on you to buy there - what you SHOULD have done was got up and walked out and told them you would look elsewhere for a better deal - you probably would have received a call the next day from the salesman offering you a much better deal on the car. Dealerships love folks to do what you did. Yes, higher interest is normal on offers of crediti after filing BK. You don't have to accept the offers and learn to shop around. A few years out of BK with great financial handling afterwards should qualify you for a better credit rate on a vehicle. If you were just out of BK, you would get the high interest rate offers. The dealership saw you as a way to make money as they view anyone walking in the door. Hopefully this well help answer your question and if it still bothers you, I would suggest creating another thread on the topic in the Credit forum or the General Forum and not try to link to car related threads on a different subject. It's not fair to the original poster.

[sassiebaz]

This is the fifth place she has posted this... two original threads, and now 3 jacked threads. I don't think anyone has the answer she wants to hear.

To the OP: the benefit I can see is that you wouldn't be paying the Trustee's percentage on the car payment if it's outside the plan.

Thanks!