Anyone Ever Total A Car That Was Included in Their Chapter 13?

[coreyb80]

TGIF,

A few weeks ago I totaled my car that is included in my chapter 13.  Insurance is paying it off and gap is picking up the balance.  Now the million dollar question, wouldn't my payment drop in 13 since the car will no longer be included.  My lawyer has a court date of 4/2 regarding the car.  I've gone back and forth with her that my payment should drop now since $500 of it was my car note and with the car being paid off that shouldn't be included anymore.  Am I wrong?

[tooleman694]

There are a lot of factors, are you in a 100 percent plan? Are going to finance a new car?

[coreyb80]

My father financed a new car in his name for me that my lawyer has been made aware of it.  Didn't want to go through the hassle of the court approval and waiting a while for a vehicle.  The only creditors that will be paid 100% in my plan are IRS(fed and state) otherwise everyone else is 15%.  Also, child support to my ex wife has  been added to my expenses which I made my lawyer aware of as well.  

[tooleman694]

You are probably going to have to do a revised plan. Remember they will take to take all disposable income. If you were in a 100 percent plan then they let you get away with more.

[coreyb80]

My income is a slighty higher than before, but I pay child support now to the tune of $400 a month that wasn't accounted for initially plus my new car note. I would never recommend including a car in 13 unless you're crazy behind.  

[tooleman694]

I included mine because I was behind one month, but they allowed me to pay the payments outside the plan. I did it that way so i could pay it off quicker.

[MakingProgress]

If your other creditors are only getting 15% I'm guessing that the car being paid off won't reduce your 13 payment.   That money will just go to other creditors.   The child support as an added expense might make a difference for you.   Good Luck. 

[coreyb80]

That's what makes it weird.  When they initially did my plan, without including the car I was @ $450 a month.  Once they included the car that brought my payment up to $900 a month. I would think removing the car would remove that payment that was alloted for them as the car was 100%.  I asked attorney to recalculate my payment with my new car note and my child support and she got it down to $650 a month.

[MakingProgress]

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@coreyb80wrote:

@Anonymous's what makes it weird.  When they initially did my plan, without including the car I was @ $450 a month.  Once they included the car that brought my payment up to $900 a month. I would think removing the car would remove that payment that was alloted for them as the car was 100%.  I asked attorney to recalculate my payment with my new car note and my child support and she got it down to $650 a month.

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What does your lawyer say about this new car "note". You said earlier that your father financed it in his name.  I'm not a lawyer, but I would think the trustee wouldn't like that.  Legally if the loan is in your father's name then he is responsible for repayment, not you.  Morally, you are responsible because he took it out for you.  The trustee should only be concerned with legal not with moral, so they may not accept that as an expense you have.   To me I think you are on shakey ground here, but I'm not a lawyer so I could be comepltely off base. 

[coreyb80]

The lawyer re-did my budget and she included it.  She asked me did someone purchase the car for me or was I going to see my own financing.  She got my payment down to $650 from $900.  Court date is set for 4/16.