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There are Some Debts Such as Priority Tax Liability that Have to be Paid

There are some things that have to be paid back.

For instance, tax liability that’s less than 3 years old, it’s what we call priority tax liability. If you have priority tax liability, that has to be paid back. If you owe money on a vehicle and you want to pay it off through the plan, which I highly recommend, that vehicle had to be paid in full during the life of that plan. And so, some people can have very high plan payments, 400, 500. I talk to a gentleman today, I actually recommended placing his entire mortgage into a plan. He had a $100,000 mortgage and I said “You know what? If you put this $100,000 mortgage into this plan, your plan payment’s going to be less than your mortgage payment”. But his plan payment was going to be $1,200 a month. Now, his mortgage payment was $1,500 a month, so it would be in his best interest to do it that way. In theory, it could be a 0 per cent plan because he’s not paying any of his un-secured creditors. He’s only paying the mortgage and mortgage is considered as secured debt and even if you pay the mortgage in full for the plan, you can still have a high plan payment but a 0 per cent plan. That’s something that I like to try to do.