The existing car note was used to fund the plan, going from $400 to $150 spread out over 60 months. It's my understanding that such secured property would be forfeit in conversion from 13 to 7. When I asked about converting, the attorney said "Do you have other transportation? They'll want the car." I qualified for a 13 plan by only 7K or so, and sold the other car for 11K just prior to filing, so again, I believe the car would be forfeit along with other assets.
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Who will want the car? The tt? The finance company?
No expert here, but I don't see either of them wanting the car. The tt wouldn't get anything for it, and the finance co USUALLY would prefer the payments.
I'd think the payment would be likely to go back to where it was tho.
Hopefully one of the pros will be along to opine.
Keep On Smilin'Comment
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Honestly, I don't think any of us have any idea what's happening here. You give such truncated answers to questions and then occassionally throw in a new fact that if disclosed a few posts prior would have saved a lot of time.
Why not start from the beginning and tell us why you filed a 13 to begin with?Comment
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Ok. My small business went under at the end of 2011, leaving unsustainable debt in the form of bank credit lines I had personally guaranteed. After a discussion with an attorney, he recommended that I file for 13 if I wanted to keep the house, but would have to find new employment immediately. I found work as a self employed consultant on a monthly basis, which was used to establish the budget along with wife's income. Filed in January 2012 and began paying. 341 hearing #1 in February. Confirmation hearing scheduled for March. I showed up at court too learn hearing had been postponed; trustee had questions about budget. Submitted new budget . Trustee requested second 341 hearing in April. Hired full time in May. Confirmation hearing scheduled for May. Trustee misplaced tax return so postponement #2. Finally approved in August. Plan payments up to then added to base. While below income threshold for 3 year plan, atty insisted only five year would meet minimums and stand chance of approval. Wife moved out in October. Without her income impossible to meet plan and mortgage payments. Asked bank for deed in lieu of foreclosure which was granted. Lost job in January 2013. Found temp work in March, which brings us to today. Please tell me what other info would be useful.Comment
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As we've been saying all along, it would seem clear that you no longer have any reason to be in a 13.
When we ask for info, it also often means tell us about your income and your expenses so we can point out where things can be corrected. Don't worry, you are anonymous here
BUT in your case it doesn't seem to matter all that much- you seem to now be clearly either in 7 Territory or even collection proof at the moment.
You don't have the house, although whether it was foreclosed or deeded seems to be a q.
Your only asset is now a car. Unless we are missing something? Never be in a 13 just for a de-valuing asset. That's one reason none of this makes sense. Your attorney seems to have dropped the ball somewhere lately.
Did you have equity in the house? If not seems this thing has been bungled all along.
Keep On Smilin'Comment
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At the time there was just enough equity in the house to pass the best interests of creditors test.Comment
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You really need to convert to a 7 with another lawyer.
Theer is no such thing as "best interest of the creditors test". Have no idea what that could be.
If, the majority of your debt was business, you were exempt from means testing.Comment
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The "best interest of creditors test" of § 1325(a)(4) -- also informally known as "the liquidation test" -- requires that unsecured creditors in a Chapter 13 case be paid at least as much through confirmation of a proposed Chapter 13 plan as they would receive if the debtor's case were liquidated under Chapter 7 of the Bankruptcy Code.
Just wanted to post the definition...it is legitimate.
However IMHO, Chapter 7 would be best at this point.Comment
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It sounds like what is going on is that if you convert to a 13, the car loan will be in arrears. So, your attorney is saying that the lender will repossess the car. Is that correct? It is possible that the lender will allow you to resume making payments. But, you can't count on that.
The fact is you have 4 years left in a plan that you are not able to make payments on. Either you need to modify your plan (if that's even realistic) or convert to a 7, regardless of what happens to the car. You can get another car.LadyInTheRed is in the black!
Filed Chap 13 April 2010. Discharged May 2015.
$143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!Comment
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