@Anonymous wrote:
I bought the truck no money down May of 2016. I financed thru a credit union with a 6.99% rate. My payment is 601 a month..would love to get it down somewhat. It's an 84 month term loan. Also, we drafted a affirmation and my cu was willing to redo the terms and get my payment down to 480. That was when I was hopeful I was getting a chapter 7, but now with a 13 does that still apply? If I remember correctly you dont do affirmations in a chapter 13. ????
The CU's willingness to drop the payment through a Reaffirmation Agreement has no impact on the Chapter 13. You are correct. One does not enter into a Reaffirmation Agreement in the context of a Chapter 13.
Now. . . the cramdown is another issue. You said you financed the vehicle in May, 2016. What is your bankruptcy filing date? Is it more than 910 days after the date of the loan? If "yes" then you can do a cramdown however, the value of the vehicle is not "trade-in". Pursuant to 11 USC 506(a)(2) the value is:
"the replacement value of such property as of the date of the filing of the petition without deduction for costs of sale or marketing. With respect to property acquired for personal, family, or household purposes, replacement value shall mean the price a retail merchant would charge for property of that kind considering the age and condition of the property at the time value is determined."
So, assuming you are beyond the 910 rule, how did you arrive at the value? The interest rate could be close to the Till rate in your district. Please note that, in my experience, Credit Unions are less likely to object to the value you placed on the collateral than say. . . Ford Motor Credit.
Des.
