Legal Question in Bankruptcy in Illinois

chapter 13 mistake

i have been in a chapter 13 from

about 16 months. In the plan i had

a vehicle lease that my attorney

entered as a secured claim. The

vehicle however was given back by

voluntary repo, sold off and a residual

value entered. My plan however has

me at 59 months with that vehicle

still as a secured plan. My attorney

said she spoke with the trustee and

said they would amend it. Basically

what is happening is i am paying my

monthly payment for the trustee

with that car still in the plan as

secured and this is causing me to

owe an additional 20,000 on the

plan. When i look on the trustees

website they have me paying 20% of

the residual of the car which i was

supposed to. i recently got a payoff

for 24,000 and when i look online for

the trustee i will have paid everyone

off by next march. This secured

claim is giving me that extra chunk

and i need to know if i can fix that

since i havent had the vehicle since

before the plan took effect and if i

can motion to get the plan shortened

. Thank you in advance for your help


Asked on 4/26/09, 9:54 am

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: chapter 13 mistake

Let's say you no longer have a secured claim on your car and you surrender it and there is a deficiency remaining that will get paid as a general unsecured creditor in your plan. The money that that freed up still has to be paid into the plan unless you have an increase in expenses that would warrant lowering your plan payment. Does that help?

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Answered on 5/05/09, 7:59 pm


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