Since I am including my car payments in the CH13 repayment plan, do I leave the amount of 'car payments' at $0 on the schedule J? If I add my $400 a month car payments to the schedule, it will appear that I have negative disposable income - which will not be the case by paying the car payment through the plan.
YES. but why are u doing that, unless there is an arrearage or other issue with the loan the trustee gets 10%?
Paying the car through the plan is mandatory in ND Ohio, I assume for Southern District this is true as well. So you are doing it the right way. I urge you to have an experienced attorney do it, however, as your chances of getting a confirmed plan by your self and getting a discharge are basically zero.
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If the car is being paid through the plan, you do not list it as an expense on Schedule J. In many jurisdictions, paying the car through the plan is not required, but is still a good idea if 1) you are cramming down the car, or 2) you are behind on the payments, or 3) you want to reduce the payment amounts, which is possible so long there are no sustained objections. The downside to including the car in the plan is that the trustee fees are higher since the trustee is paid their percentage based on the total amounts paid out of the plan. Since Chapter 13 cases are very complicated, you really should hire an attorney to help you. Attorneys can get paid their fees through the Chapter 13 plan.
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Car loans are paid through the Chapter 13 Plan, so you would leave the amount of 'car payments' at $0 on schedule J.
Yes, if you're including the car payment in the plan, then put $0.00 in that box. If you're current on your car payment, I recommend paying that outside you're plan to avoid paying the trustee the commission which will be applied and which ranges from 6-10%. In my district the trustee commission is usually 6% but it is allowed to be as much as 10% and frequently is the max allowed.
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I agree with Mr. Brewer - Chapter 13's are very complex and have many pitfalls. I highly encourage you to hire an attorney for this process.
My answer to this question is for general purposes only and does not establish an attorney-client relationship and is not legal advice. You should contact an attorney directly for legal advice. We are a debt relief agency and we help people file for relief under the bankruptcy laws.
If paying the car through the Chapter 13 Plan, you do not list the monthly payment on Schedule J.
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