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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2891
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I am attempting to put together a plan for Ch 13. It was determined

Customer Question

I am attempting to put together a plan for Ch 13. It was determined that I only have to pay back the secured loan (2 cars 1 mortgage). Do I list only the item (mortgage) that I need to pay arrears on, or do I list the cars as well; and if I can list all the items can I reduce the amount I currently pay on any of them? Lastly, is there a standard amount that is expected for mortgage arrears, or can I put any number? Thank you.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
Good morning, and thanks for your question. Your plan should list the mortgage arrears at the amount you ate behind. Guess if you have to. The lender will file a proof of claim once you file, with the exact amount, so you can file a modified plan before confirmation to correct the amount. As for the cars, if you financed them more than 910 days before filing (2.5 years) you can cram down the amount to pay 100% of the fair market value ( or are the 2 best sources) with interest (prime rate plus 1-3%) according to the case law. The remaining balance will get paid based on your unsecured debt payment rate. If the car is less than 910 days old, you cannot cram it down and must pay the balance 100%.

Thanks and goof luck
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Customer: replied 7 years ago.
Thank you for your response. Can I cram down the mortgage payment to fair market value as well since the value of the home has dropped? Do you happen to know the current prime rate off the top of your head?
Expert:  Terry L. replied 7 years ago.
Unfortunately no. Congress attempted to do pass a law to allow mortgage cramdowns, but it never passed the Senate. Prime is 3.25% right now. Good luck.