Interesting... but will it work?

[caj0524]

There does not appear to be any prohibition against modifying the interest
rate, monthly payment, and term of the loan, so the plan allows those
modifications

*********
The key for me is the last paragraphs regarding the interest rate. On this form, a debtor can pay his or her car loans inside the plan, reducing the interest rate to almost zero. For this district (KY), they use the WSJ Prime Rate plus 2% on the date of confirmation as their standard interest rate. WSJ Prime plus 2% today would be 5.25%, and could save me a load, as we've got 1 car at 16%, and another at 29.9%.

Anyone seen or heard of this? I can't cram down the principal, but I can the interest???

Thanks!

[justbroke]

Is your vehicle a so-called 910-vehicle? I mean, you purchased it less than 3 years ago? If so, you can change the Interest rate to teh Till Rate (which is what you're mentioning. Till is about 3.5% right now. It is set in KY quarterly, so you have to use what it's set at.

[oldhack]

Be careful what you wish for!
My original GMAC rate on my 2004 vehicle was 2.9%. I "crammed down" the then-worth of the vehicle in my 2005 Chapter 13 filing, and wound up paying aournd 8% interest on the remaining value thoughout my plan.
Don't assume a lower rate. Congrats if it works.

[caj0524]

Can the payments be made within the 5 year plan for a secured loan?
I'd like them to be.

Also, once the 5 years is up, and the unsecureds are discharged, can the car companies come back for the back interest, or will they have to release the lien at that time?