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Confirming plan and need to refinance auto outside plan

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Confirming plan and need to refinance auto outside plan

So my Attorney is ready to ammend my plan for confirmation. Im trying to lower monthly debt by pulling my truck from the plan and pay outside. My credit is garbage of course but girlfriend has a 670 or so. Can she cosign the autoloan to get decent rate?

My plan payment was $1,595 and i needed it lower, now its been bumped to $1643 monthly. Attorney says pull the truck out and payment drops to $1,250 roughly.

Only owe $13,500 on truck its worth about $20K

And i figure we can try to get it paid off over next year to lower monthly for remainder of plan 43 months.

Yes i am 17 payments in and still not confirmed. Attorney says he had a client make 63 payments before confirmation on 60 month plan.

 

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Super Contributor

Re: Confirming plan and need to refinance auto outside plan

Looks like a lawyer question if you ask me. Pay outside? IDK. There's always a cramdown method. If you satisfy certain conditions, you can reduce the principal balance of your car loan to the car’s fair market value in Chapter 13 bankruptcy. This is referred to as a car loan cramdown. A car loan cramdown may also allow you to reduce the interest rate on your loan as well. When you cram down your car loan, you pay the lender an amount equal to what your car is worth through your plan. The remaining loan balance is treated as unsecured and wiped out when you complete your plan and obtain a discharge.

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