Posted on: 17th Jun, 2009 07:58 pm
hello,
in aug.2007 my husband and i filed chapter 13 bankruptcy, getting the plan confirmed took alittle work as we our car payments were pretty high not allowing for alot of income left over to fund the plan. after having a hearing to cramdown the car payments and them being paid throught the plan instead of to directly to the lenders. the original trustee payment was $212 for 3 yrs, but after adding the cramdown debt of the car payments, the plan payment became $1153 over the remainder of the plan(42 mnths) which was changed from 3 yrs to 5 yrs
in oct.2008 my husbands hrs were reduced in due to the economy and we had to file to abate the payments as the payments to the trustee were
falling behind, which was granted. but then in jan. 2009 his hrs were cut even more and i have suffered a major neck injury leaving me unable to work. in 2001 we had filed a previous chapter 13 which later(2004) was converted into in a chapter 7 discharge, therefore we are not able to convert this case.
we filed a hardship discharge and today june 17,2009 was granted. 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 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.
in aug.2007 my husband and i filed chapter 13 bankruptcy, getting the plan confirmed took alittle work as we our car payments were pretty high not allowing for alot of income left over to fund the plan. after having a hearing to cramdown the car payments and them being paid throught the plan instead of to directly to the lenders. the original trustee payment was $212 for 3 yrs, but after adding the cramdown debt of the car payments, the plan payment became $1153 over the remainder of the plan(42 mnths) which was changed from 3 yrs to 5 yrs
in oct.2008 my husbands hrs were reduced in due to the economy and we had to file to abate the payments as the payments to the trustee were
falling behind, which was granted. but then in jan. 2009 his hrs were cut even more and i have suffered a major neck injury leaving me unable to work. in 2001 we had filed a previous chapter 13 which later(2004) was converted into in a chapter 7 discharge, therefore we are not able to convert this case.
we filed a hardship discharge and today june 17,2009 was granted. 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 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
I don't think you'll have to make the car payments any more. A hardship discharge under chapter 13 is possible only when the creditors have been paid as much as they would have received in chapter 7. So, your creditors have already been paid what they should have got. Now, you've been discharged of all your debts and you do not owe the car loan anymore. However, they may repossess the car if you do not pay them the loan balance. But at this point in time, you personally owe them nothing.
I don't think you'll have to make the car payments any more. A hardship discharge under chapter 13 is possible only when the creditors have been paid as much as they would have received in chapter 7. So, your creditors have already been paid what they should have got. Now, you've been discharged of all your debts and you do not owe the car loan anymore. However, they may repossess the car if you do not pay them the loan balance. But at this point in time, you personally owe them nothing.
But that is what I mean, the full balance of car payments was added into the plan, for example, the one car balance was 26,000., it was crammed down and the balance then became 18,000 as that is all the vehichle was worth. the difference of 8000 then became unsecured and the 18,000 instead of being payed to the loan company was then being paid to the trustee., so now technically we dont even have a loan company or even a payment amount. the 18,000 usually in a chapter 13 you generally still make the car payments to the loan company ours on the other hand was being payed to the trustee, do you understand what I mean?
Hi stonessix,
As Savior said, you 'personally' do not owe them anything. The hardship discharge releases you from your personal liability towards the car loan. Under bankruptcy discharge, the borrower normally has to reaffirm the debts and continue making payments in order to keep the collateral safe. Thus, if you stop paying the car payments, your credit will not be affected as you are no longer responsible to make the payments. But in that case, your car could be repossessed because the car was kept as a security for the loan and as per the loan agreement, the lender has the right to repossess it for not paying the loan.
Thanks,
Jerry
As Savior said, you 'personally' do not owe them anything. The hardship discharge releases you from your personal liability towards the car loan. Under bankruptcy discharge, the borrower normally has to reaffirm the debts and continue making payments in order to keep the collateral safe. Thus, if you stop paying the car payments, your credit will not be affected as you are no longer responsible to make the payments. But in that case, your car could be repossessed because the car was kept as a security for the loan and as per the loan agreement, the lender has the right to repossess it for not paying the loan.
Thanks,
Jerry