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Car payment is ending, payment increasing?
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Did you get the quote from a dealership service department, or from an independent mechanic? I ask because dealerships are routinely twice as expensive for any given repair.
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ABS system / hydralic
All the brakes
Tie Rods
Exhaust
Tires
I think I am forgetting something and they suspect more will be wrong if they started to fix stuff
There's at least two recalls that they would have to fix (no cost on that of course, but still repairs).
The a/c broke down a few years ago and was too costly to repair.
We did not keep up with the vehicle maintenance so I imagine that plays a part in the scenario. But we never had the extra money to put into it prior to BK and after there's not enough in the budget. This is why I am really prioritizing making sure my almost 4 yr old car is in top working order and making sure I get the maintenance done timely.
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Originally posted by Carmella View PostWe also have a step up plan when our car is paid off for about the last 16 months of our plan. Our car is now not drive-able (and too expensive to repair due to age of the car and extent of repairs) and we have a good year left on the payments that we are still obligated to pay. We are trying to figure out how to handle it maybe finance another care which involves attorney filing a motion/court, etc. But whatever happens we are still obligated to pay off that loan and to pay the increased payment (even if we get a NEW car payment).
It does stink, but Chapter 13 is like this. But to me the fact we will be debt free in 5 yrs even with a not so great credit report is worth it. I think the second chance and not having to deal with being sued/wages garnished/increased fines/interest is the pay off in the long run.
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We also have a step up plan when our car is paid off for about the last 16 months of our plan. Our car is now not drive-able (and too expensive to repair due to age of the car and extent of repairs) and we have a good year left on the payments that we are still obligated to pay. We are trying to figure out how to handle it maybe finance another care which involves attorney filing a motion/court, etc. But whatever happens we are still obligated to pay off that loan and to pay the increased payment (even if we get a NEW car payment).
It does stink, but Chapter 13 is like this. But to me the fact we will be debt free in 5 yrs even with a not so great credit report is worth it. I think the second chance and not having to deal with being sued/wages garnished/increased fines/interest is the pay off in the long run.
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Originally posted by fedupwithit View PostHi justbroke, thank you! I didn't know any of this and honestly am feeling bitter toward them (will get over it though) and very thankful to you all.
Originally posted by fedupwithit View PostDo the attorney and trustee make the plan and confirm it without letting us review it? For example, if the attorney is just now starting on the plan based on the hearing, will he present it to the trustee without our ok, or does he send it to us and then have a discussion with us about any changes?
As your attorney works through any objections to your (attorney-drafted) Plan being confirmed, your attorney lets you know what will be changed, what may be changed, what could be argued, and what must be changed. It's a fine dance and the Chapter 13 Trustees are usually correct in their assessment (because there is typically only 1 or 2 Chapter 13 Trustees in an entire district and they handle thousands of cases each year... so they see everything). The trustee has a staff of attorneys, some accountants, and support staff. My trustee had 3 staff attorneys (not including himself), plus at least a dozen of other people in the office.
Originally posted by fedupwithit View PostDoes this depend on the attorney? Because I'm about to be the biggest pest they ever met, if needed.
If your attorney told you -- and I think you stated this -- that they will work on your expenses to try to cover some/most of that difference, then that's a tell. It's telling you that the Chapter 13 Trustee is correct but you may have not exhausted all the expenses that you could... thereby eating up some/most/all of that difference.
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Hi justbroke, thank you! I didn't know any of this and honestly am feeling bitter toward them (will get over it though) and very thankful to you all. Do the attorney and trustee make the plan and confirm it without letting us review it? For example, if the attorney is just now starting on the plan based on the hearing, will he present it to the trustee without our ok, or does he send it to us and then have a discussion with us about any changes? Does this depend on the attorney? Because I'm about to be the biggest pest they ever met, if needed.
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fedupwithit no worries at all. I just realized that this is pre-confirmation which is the perfect time to deal with potential budgeting issues. This is also the best time to keep bugging your attorney since they typically use what's called a "no-look" fee up to and including confirmation. In that way, you don't incur any additional attorney fees. (Sure, they may tell you that you don't need to keep bothering them, but you should walk away understanding your Plan and how everything will work for you.)
I'm gathering that the Chapter 13 Trustee told you about the step-up in payments at your 341 Meeting. The 341 Meeting is the time where the trustee may make comments on the plan. However, the period of time between that meeting and the final confirmation hearing, the trustee and your attorney work to an agreeable plan. If they don't agree, and your attorney chooses to go before the judge, then they'll have another hearing where your attorney attempts to override the trustee's objection to your plan confirmation.
But, let's just work on the budget. If you have serious things that need fixing then you should plan those out. This should be the minimum amount to make it workable. It can't be a large project which involves replacing "all" the pipes. It can only be what is immediately necessary and urgent. The Trustees like to think of it as "what would you have done if you had no money?" And that answer is to defer the repairs.
A Chapter 13 will indeed force a homeowner to defer most maintenance. I had to defer all my maintenance, even though my house needed a thorough paint job, interior and exterior, and new carpeting. The sewer issue with my home was urgent. The A/C issue with my home was urgent. The plumbing issue with my home (leaking causing large water bills) was urgent. I dealt with these throughout my plan. It was always something and the HOA liked to nail me on my lawn; I had to re-sod the front lawn 3 times during my Chapter 13... but the Trustee approved it!
In a defense of the attorney, the step-up plan was probably something he didn't expect! Some Trustees don't catch the payoff of the vehicle and are okay with the plan. Other Trustees may see it and mention it at the 341 Meeting. It reads as though your attorney didn't expect it and didn't put a step-up in the Plan. The Trustee's office caught a payoff of a car during the plan and the amount was "significant" enough for the Trustee to care.
In fact, there is hardly anyone who gets by the Chapter 13 Trustee with some objection to confirmation. It is a rare thing to present a perfect plan. The Chapter 13 Plan is part black magic and part art. It is a contract negotiation.
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Hi justbroke, I apologize, I should have been more clear in my initial post. We only had the first hearing and that's where the trustee said payment would increase later. I spoke with my attorney about it after and he said we would submit a new budget down the road to adjust the payment and account for this. He never mentioned having a step up plan in place or anything like that. I am reluctant to keep calling to bug them about this but am also upset that maybe the whole process is not being laid out. I haven't been informed of a base payment amount or anything like that. Might call the paralegal today to inquire. Thank you for your information.
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Bankruptcy is the only thing that is definitive as to the status of debt once a discharge is entered. shipo mentioned most of the issues with being without that protection and definitive nature. Another issue is that sometimes creditors will negotiate, take a lower payment, but then sell the balance to yet another debt collector. It can be a vicious cycle.
I didn't realize that you are not even through confirmation. Since you are not through confirmation, this is the period of time where you attempt to deal with things. If you need things fixed "today" then you need to have your attorney plan the step-up payments differently. Even I did relatively small payments in the first 6 months, and then stepped up. However, my stepped up payments still paid what was necessary, just spread over the remaining 54 months.
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fedupwithit, keep in mind, by proceeding without the protection of a Chapter 13 filing, lots of bad things can happen, including, but not limited to, judgements against you, repossession of assets, and 1099-C forms being sent to you (and the IRS) which can dramatically impact how much income tax you'll owe.
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Sorry to hear this, Barbisi. I'm leaning toward throwing all this chapter 13 stuff out the window and braving it on our own. Will see what happens at confirmation hearing. Good luck to you also.
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If it's any comfort, fedupwithit ,we recently had our "step up" payment increased by nearly $200 more after a protracted struggle. Our car was supposed to be paid off in December 2020 ($197) , but our thoughtful trustee decided to raise our payment in August 2020 by more than $600 ostensibly due to my husband's pay stubs increase since we filed in Feb.2017. With our befuddled attorney's "help", we managed to get the new payment amount decreased somewhat - down to nearly half of the original demand.
These trustee are relentless and ruthless and unless your insurance backs you up on the roof leaking, for example, you will have a steep battle trying to reduce post-petition payments. (See my posts about our allowed medical expenses struggle pre-confirmation, and then, the hawkish monitoring of our post-confirmation income ever since.)
I'm sorry you have to deal with a run down dwelling that really needs $$$$ in repairs while you are trapped in this BK13 whirlwind.
Good luck on surviving five years in Hades!
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