LAdyinRed/Attorneyoney- Chap 7 and my car payments

[upontheventura]

What is the name of your state?Nh
Same friends who said i couldnt declare Chap 7 because of my income said that my car payment (366 per month) will not be allowed as a discretionary expense because the amount is to high? (As far as figuring out my income/expense ratio thing. The trustee may say- we will only allow 250 of that to be considered.. Is this true? The car loan was taken out in April, I assume i will be declaring bankruptcy in Nov or Dec (my consult is on Oct 4th) I want to reaffirm the debt. Then I also heard that the finance co. would have to lower my payments down to fair market value? Is THAT true?

 

[Ladynred]

I suggest you stop listening to your friends, they clearly know very little.

Your car payment is a secured debt, it is NOT subject to any kind of 'cap' or restriction. If you want the car, you have to pay for it so its not exactly a 'discretionary' expense, like a movie ticket would be. Payments for secured debts go on a separate schedule for secured debt, the rest of your expenses go on other forms.

Don't worry about your car payment, it won't be disallowed at all.