I have car loan questions....from our meeting yesterday

[indebt00]

They told us we have to include the purchased car loan in the BK, but continue to pay the lease loan outside the plan. is this true? is it ok?

we want to keep both cars, so at the end of the plan do I resume making normal pymts to the purchased car loan? Do I pay the full loan pymt to the car loan (or does the trustee)? or are they getting lower than what is owed?

if they are getting less then am I behind thousands of dollars at the end of the loan???

help??? I didn't ask these questions at the interview.

[justbroke]

They told us we have to include the purchased car loan in the BK, but continue to pay the lease loan outside the plan. is this true? is it ok?

Paying "outside the plan" depends totally on what District you file in. Even in those restrictive Districts -- where all secured debt must be payed through the Plan -- they tend to allow a Debtor to file a motion for permission to pay outside the plan.

we want to keep both cars, so at the end of the plan do I resume making normal pymts to the purchased car loan? Do I pay the full loan pymt to the car loan (or does the trustee)? or are they getting lower than what is owed?

No. At the end of the Plan, the cars would be paid for in full!

if they are getting less then am I behind thousands of dollars at the end of the loan???

No. This will be worked out inside the Plan. Suffice it to say, that if the cars were purchased over 910 days ago, the lender will get something between the current market value and the full value. At the end of your Plan and if you successfully discharge... anything unsecured would be discharged at that time, in full.

[indebt00]

We purchased the cars 1 month ago.

we have one that is financed for 6 yrs and 1 that is a 36 month lease.

we want to keep both. is it more beneficial to us to put the car loan in the bk? I thought we wanted to keep them both out and pay direct???

which is better? thanks !!!

[TooMuchCredit]

We purchased the cars 1 month ago.

we have one that is financed for 6 yrs and 1 that is a 36 month lease.

we want to keep both. is it more beneficial to us to put the car loan in the bk? I thought we wanted to keep them both out and pay direct???

which is better? thanks !!!

I think you and I are both in N GA. I just filed today. I was expecting to pay the car outside the plan, however, filing within the plan allows me to try and get the interest rate reduced to 4.75% vs. the current 9% AND allows it to be paid in full in the 60 month plan instead of 69 more payments (I bought end of November so have made 3 payments).

[Nicollette]

We purchased the cars 1 month ago.

we have one that is financed for 6 yrs and 1 that is a 36 month lease.

we want to keep both. is it more beneficial to us to put the car loan in the bk? I thought we wanted to keep them both out and pay direct???

which is better? thanks !!!

I have found that paying the car loan inside the plan is much easier. You don't have to be worried about the possibility of being late on the payments, since the Trustee is making the payments for you.