Secured debt in Plan

[Greg0538]

Reading other posts in this forum...and other BK forums leads to this question. I am in Western PA. and am wondering how secured debt is paid from plan. It seems some people have found that some secured debt, especially 2nd Mortages or Home Equity loans are not being paid on time. I'm concerned about including secured debt in plan(Atty's advice). I have not filed yet..Only in Info gathering phase.

Our family income can cover expenses and secured debt with no problem.

[HHM]

You don't have to include the secured debt in the plan. When people do that, its because they are exercising a "cramdown" on a creditor. For example, say you have a car worth $8000 and are making $350 per month and still owe $12,600. If you exercise a cramdown, you can pay off your car at the "present value" of $8000 over the 36 month plan at $222 per month. However, that $222 goes to the trustee who in turn pays the creditor, ergo, its "in the plan"