Is an interest rate applied to other types of secured claims?

[optimistic1]

For my plan, there will be three types of secured and priority claims.

1. Car, valued at about $6k, owe about $10k. WSJ Prime rate plus 1 to 2 percent extra, correct?

2. Possible best buy claim, which I will have to fight, because the only thing I still own from using that credit card, is a 2 year old laptop valued at about $200, and a 4 year old TV valued at about $300.

3. Taxes owed for tax year 2008 at approx, $1200.


Will debts # 2 and #3 also need an interest rate incorporated into the plan?

[lrprn]

1. Car, valued at about $6k, owe about $10k. WSJ Prime rate plus 1 to 2 percent extra, correct?

Whatever interest you agreed to for the car loan will be included when calculating the total you will pay the lender during your Ch 13.

2. Possible best buy claim, which I will have to fight, because the only thing I still own from using that credit card, is a 2 year old laptop valued at about $200, and a 4 year old TV valued at about $300.

I'm sure if you look at the fine print on the loan agreement, you'll discover that you made a loan secured by the laptop. Signed, sealed, delivered by your own signature. Waste of time and $ to fight that.

Instead what you can do is refuse to reaffirm the laptop loan. Let Best Buy file a claim and get their % through your Ch 13, but you won't owe the rest when your Ch 13 is done. If they threaten to come get the laptop if you don't reaffirm, tell 'em fine, come on over and pick it up....they won't. A 2 year old laptop is worth much less than it would cost them to lift the stay and find someone to come get it.

3. Taxes owed for tax year 2008 at approx, $1200. Will debts # 2 and #3 also need an interest rate incorporated into the plan?

For #2, if the loan is secured by the laptop, then yes, whatever interest you agreed to for the loan will be included.

For #3, yes, since the taxes owed are from the last three years, the interest will be included. If the taxes are not dischareable, neither is the interest.

[optimistic1]

I dont think I phrased my original post correctly.

I would not be paying the original interest rate when I include the car loan in the Ch.13, I will be cramming it down, and the interest rate no longer applies. Its the prime rate plus 1-2% extra.

This is what I am asking.

For the taxes and best buy claim that I owe, will they add a interest rate to these as well? Similar to the cram down prime rate?

When I stated that I would have to fight bestbuy, the reason I stated that, is that the balance is $1600, and the value of the collateral is only $500, and I will be fighting it, to me it is not a waste of money.

[lrprn]

Please keep in mind that every bk financial mountain does not require you to die on it trying to prove you are right. It could easily cost you a lot more trying to find out if you're right than you will save in the end, and worse, you could find out after spending a lot of precious cash that the court doesn't agree with you and you'll owe the money anyway.

I hope you will pick and choose your financial battles carefully before and after filing so you can focus your considerable energy on the ones that are most important in the long run for you to win. Best of luck to you, Optimistic1 - I hope everything turns out the way you hope it will.

[optimistic1]

Well Im not sitting here hoping for things really, the possible best buy secured claim that I was referencing to "fighting" was actually suggested by my attorney. He said they wont get the whole $1500, just the value of the collateral. I was just wondering if the amount that we finally would agree on will have an interest rate applied to it within the plan. Which I still have yet to get a definitive answer on within this thread, I pm'ed a pretty smart individual who answered the question. I could just ask my attorney, but what would be the fun in that? Besides, he is off on the weekend. Thanks for the well wishes.