Posted on: 18th Jun, 2009 10:16 am
My question is since the car payments were being totally funded through the plan, will we still have a car payment to the finance company or will the amounts be discharged as they were added to the plan and our hardship discharge was granted with no objections? The only stipulation with the cramdown stated that " if not paid in full in the plan due to dismissal or conversion cramdown amount would become non-binding." so in reality the case was discharged, not dismissed or converted. our attorney is not sure whether we will still have to pay the car payments or if in fact they are disharged as the total amounts including the interest were supposed to be paid in full through the plan. Anyone know if these debts will be discharged or still have to be paid. Thank you for your replies.
Hi
You don't have to make the car payments any more. If the court has given you a hardship discharge, it means your debts under the chapter 13 plan have been discharged due to hardships, for which you were not personally responsible. The mortgage holder cannot come after you for the car payments any more. But the car is the security against the loan. So, if you do not make the car payments, your credit won't be affected, but you can lose your car to repossession.
You don't have to make the car payments any more. If the court has given you a hardship discharge, it means your debts under the chapter 13 plan have been discharged due to hardships, for which you were not personally responsible. The mortgage holder cannot come after you for the car payments any more. But the car is the security against the loan. So, if you do not make the car payments, your credit won't be affected, but you can lose your car to repossession.