Expert: Terry Leeders - 6/20/2008

Question
I filed chapter 13 bk I have a car loan in which I owe $14,000. I received a copy of the plan and it shows  that my financial institution is only going to get $6500.00. Can they fight this amount or can they take the vehicle away from me?

Answer
Your chapter 13 plan sounds like you are cramming down the value of your car.  You are paying $6500 at the secured rate, probably with some interest.  This is probably the fair market value of your car.  Your plan is then probably paying the other 7500 at your unsecured rate.  Under the bankruptcy code and case law, this is permissible.  If your car company objects, they may argue a different fair market value, or ask for prime+3% (maximum under the supreme court case - In Re Till.)
If you complete your case, then your car will be paid in full.