So, what if someone simply has a lot of things to pay where car payments are what ended up getting him to that debt?
With car payments, I prefer to include the car debt to be paid in full through the plan. And so, if you’re including the car debt in the plan, then the plan payment becomes your car payment. And in some cases, your plan payment will actually be less than what your car payment was because your interest rate is lower. And also in some cases, they can actually stretch out your debt to 5 years. Let’s say you only owe 3 years on a car but your car payment is high, say it’s $700 a month for the next three years. Then if you file a bankruptcy and you propose a 5-year plan, you might stretch your filed car payment over 5-years, Your plan payment is then going to be lower than what your original car payment was. It gets complicated to implement, so you will definitely need help on this.