Is this fraud???

[LadyInTheRed]

No I dont have a car payment now. But If I buy a car the Illinois allowance for ownership is $495.

Those $495 will be tacked on to my allowable expenses wich will reduce my DMI to $105.

From those $105 I have to pay Secured and Un secured debts correct?

The $495 will be used on form B22. Your schedule J will show your actual expenses. If your DMI on Schedule J is higher than on form B22, then your payment will be the Schedule J amount. So, if $105 is not enough to fund a feasible plan, your schedule J budget needs to show lower expenses than are allowed on Form B22.

[eltaur2000]

That's how mine was done as well. It wasn't required that my car payment be included in the plan, but my attorney suggested we include it to give the trustee something to earn a fee on. Keeps the trustee happy without any additional money coming out of my pocket.

So the car can go in the plan or out of the plan it does not matter. Becuase at the end of the day it's subtracted from your DMI and you are paying bacn the loan at 100% anyway right?

[LadyInTheRed]

Does Eltaur have to have exemptions to cover the equity in the secured items from Best Buy and Room Place?

He/she must either be able to exempt the equity or pay an amount equal to the equity to the unsecured creditors.

Lady,

So basicaly I just have to have enough to pay all my secured debts (Car, Best Buy Appliances, and The Room Place furniture) my attorney and trustee fee?

If I can cover that using my DMI and there is little to nothing left my un secured debt's get nothing?

A plan like this can get approved?

Yes.

So the car can go in the plan or out of the plan it does not matter. Becuase at the end of the day it's subtracted from your DMI and you are paying bacn the loan at 100% anyway right?

Right. But, some districts might require certain secured debts be paid within the plan.

[LadyInTheRed]

I just wanted to emphasize that

This is a bit of a simplification and you should consult with a few attorneys about your specific situation before you go out and buy a car.

[eltaur2000]

I just wanted to emphasize that

GREAT STUFF!!!!! So Glad I found this forum!!!!!!!!!!!! Thank You Nissan Maxima here we come !!!!!

[eltaur2000]

In reallity a new car is freebie. You either give the money to your unsecured creditors or give to whoever finaced the car and get a reliable car that is going to last you 60 months????

[catleg]

Be sure to get the extended warranty on the car if the overall car payment fits within the monthly ownership allowance.
Also get yourself a nice set of rims. :-) (inside joke here).
It would be wise to make sure the length of the loan will not end before your chapter 13 plan ends.
So if it's a 60 month plan go for a 72 month loan as long as you file within a year.

[mountanddo]

You are lucky eltaur. I have a 15 year old car and basically my DMI is $100/month. All unsecured creditors so basically I would be paying my attorney, the trustee and my $400 in back taxes. The unsecured creditors will get about $1000 over 36 months, if that much because I don't know how much the trustee takes. So even if I could get a car loan my DMI doesn't support a car purchase. It's a good thing my benefits are FREE because if I had to pay for them I don't even think I'd be approved for a C-13. I just started a new job so my attorney said that if I got a big enough raise I might be able to finance a car with the additional money rather than adding it to my DMI but I don't think my raises are going to cover that. Even after the 3 year C-13 my DMI really is about $100/month literally not just on paper so basically I'm screwed. My only hope is that any repairs on the car don't come all at once so I can keep the car going and pray for a change in my income after 3 years or a miracle, whichever comes first! ANY suggestions or ideas would be greatly appreciated but I realize I just hijacked this thread....

[eltaur2000]

You are lucky eltaur. I have a 15 year old car and basically my DMI is $100/month. All unsecured creditors so basically I would be paying my attorney, the trustee and my $400 in back taxes. The unsecured creditors will get about $1000 over 36 months, if that much because I don't know how much the trustee takes. So even if I could get a car loan my DMI doesn't support a car purchase. It's a good thing my benefits are FREE because if I had to pay for them I don't even think I'd be approved for a C-13. I just started a new job so my attorney said that if I got a big enough raise I might be able to finance a car with the additional money rather than adding it to my DMI but I don't think my raises are going to cover that. Even after the 3 year C-13 my DMI really is about $100/month literally not just on paper so basically I'm screwed. My only hope is that any repairs on the car don't come all at once so I can keep the car going and pray for a change in my income after 3 years or a miracle, whichever comes first! ANY suggestions or ideas would be greatly appreciated but I realize I just hijacked this thread....

This thread was pretty much done anyway. I basically got the red flag to go buy a 2011 Maxima. I'm compassionate to your situation. Keep in mind you only have 36 that is a big difference from 60.

[catleg]

Another "advantage" if you will, of buying a car just prior to a ch13.
If the car is a lemon, or your circumstances change and you cannot afford the payments, you can just modify your plan and turn in the car without worrying about a deficiency balance.

[LadyInTheRed]

I basically got the red flag to go buy a 2011 Maxima.

Emphasis on the red flag. It looks like you are looking at a $30K car. The car I bought that raised no questions was a $16K car. I'm guessing from your other thread that you are trying to figure out how much of a car payment you can handle and still propose a feasible plan. Also, don't run out and buy a car based on what you learn on this board without first consulting with an attorney. Don't rely on your own estimates. You need to have an experienced attorney run your numbers. Many people who make their own estimates are surprised when their attorney tells them what their plan payment will be.

[Jf24]

In the same situation with the car. Married but soon filing as and individual. Wife has better credit than me so car will go in her name. I assume it will be paid out of the plan but part of the DMI calculation. Or can this be in the plan.

[lrprn]

In the same situation with the car. Married but soon filing as and individual. Wife has better credit than me so car will go in her name. I assume it will be paid out of the plan but part of the DMI calculation. Or can this be in the plan.

Will the car loan be in your name too or just hers?

If the new car loan is in your wife's name only, since you are filing solo without your wife you won't be able to list the new car payment as a part of your expenses since you are not responsible for paying the loan. You also can't list it as an asset when you file either because legally the car will belong only to her, even if you are using it.

[Jf24]

Will the car loan be in your name too or just hers?

If the new car loan is in your wife's name only, since you are filing solo without your wife you won't be able to list the new car payment as a part of your expenses since you are not responsible for paying the loan. You also can't list it as an asset when you file either because legally the car will belong only to her, even if you are using it.

It will be in just her name. She has much better credit than me. Credit aside, if possible to be in both our names is that an advantage or disadvantage?

I thought even though I file on my own we use total house hold income and expence when figuring DMI.

[momofthree]

It will be in just her name. She has much better credit than me. Credit aside, if possible to be in both our names is that an advantage or disadvantage?

I thought even though I file on my own we use total house hold income and expence when figuring DMI.

I filed jointly, but from what I understand, when you file as an individual, your wife's income will be taken into account, while her expenses are backed out, so only the income that she contributes to the household will be included. If the car loan is under her name only, her income will be expected to pay for it, and it will not be included on your schedule of expenses or listed on your means test. If she didn't have her own income, that would be a different situation, and you could list it as an expense. I strongly suggest getting advice from your attorney before purchasing the vehicle. It would probably be best to include your name on the car and the loan.