Anyone else encounter issues with cram-down of car loans??

[becky20]

We filed in July, 341 in August, and STILL haven't been confirmed because the credit union we have the loans with has been fighting the values we proposed. This is now costing me more money in legal fees and I'm beyond frustrated. I think it's bizarre that something that seems to be such a part of chapter 13 is turning into such an ordeal. Anyone else have this experience???

[HHM]

Most likely, it's because your dealing with a credit union (they suck when it comes to BK). What sort of vehicles are we talking about and what do you say they are worth vs. what your CU says they are worth?

[becky20]

a 2000 Pontiac Bonneville SSEI and a 2005 Dodge Ram (4 door hemi).

Upon filing we owed 21K on the truck, and 8K on the car. Our cram down recommendation was 13350 for the truck and 5800 for the car. The credit union is stating that the car is worth 9400 and the truck is worth 17660.

The CU used KBB suggested retail value in excellent condition for both (which the blurb states less than 5% of all used vehicles would fall into this condition).

Our atty used KBB, and I think they used private party value (whichever was the "middle" of the three choices as far as values - not the one that would give us the lowest and not the one that would give us the highest).

[optimistic1]

The CU is ridiculous, there trying to put a "retail value" on the vehicle. Thats not a good representation of the car's value.

Good Private Party Value sounds much more fair.

Hopefully you win.

[becky20]

thanks, I hope we win too, but of course now I'm incurring more attorney fees for this crap. I'm guessing they are hoping that we'll just give in to avoid the extra costs. We had to laugh when they valued each in excellent condition - one car is going on 9 years old and over 100K miles on it, the other 4 years old and 65K miles or more on it. They are out of their mind!! Just hoping the judge takes our side on this one...

[BigJohn]

The credit union is going to milk it for all it is worth. Just hang in there don't settle for a higher value.