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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I purchased a tractor as a gift for my son last summer on a

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I purchased a tractor as a gift for my son last summer on a secured loan. Due to a divorce situation I expect that I will be filing Chapter 13 bankruptcy in a few months. He needs the tractor - how can we keep it? What are our options? What do we need to watch our for? We want to do this right.  What about keeping current with that bill and paying less on others?


WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

This is a common situation,

WALLSTREETESQ :

You would be able to keep the chapter 13 case,

WALLSTREETESQ :

What you would do is reaffirm the tractor loan, and agree to pay it monthly,

WALLSTREETESQ :

and the trustee would allow it in most cases, as their is a secured loan and secured loans are typically favored to be reaffirmed.

Customer:

Can my son make the loan payments after reaffirmng? Before filing, can I pay that loan in full while paying others just a part payment?

WALLSTREETESQ :

Your son can make the payments as well.,

WALLSTREETESQ :

Paying them in full prior may be a problem, as that may be considered a preferential payment,

WALLSTREETESQ :

Your other creditors may object to the payment,

Customer:

Right - that makes sense. I think I remember that from some reading I did.

Customer:

Thank you, XXXXX XXXXX very helpful.

WALLSTREETESQ :

What you can do is pay off some of the debt now and wait 6 months or more and file, then it may not be an issue.

WALLSTREETESQ :

Also, if their is equity in the tractor it could be a problem, and the trustee can force a sale of it to pay your creditors, so it is best to not have any equity,

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please provide us with positive feedback.

WALLSTREETESQ and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

Hi -


 


I am planning to pay my creditors according to a payment schedule that is not preferential for the next 4 months and file for bankruptcy in April. I will affirm the loan on the tractor. My son will make the payments. Would he commit to paying me the sum monthly and I would treat it as a sort of income? or would he commit to paying the tractor creditor?


 


Also, it is a loan with about 3 1/2 years to go - we have paid 1/2 year. Would the payments then be spread over the 5 year bankruptcy period?


 


Thank you

1. if your son agrees to pay the loan, he would submit an affidavit to the court, stating so, it would be treated as income to you.

2. The payments would not change at all, the full monthly payment must be made to the secured creditor, be aware the less equity in the property the better, so the trustee does not try to sell it.