How have the rules in Chapter 13 changed regarding payment to car loan creditors?
Chapter 13 clients will not be able to cram down on car loans as easily as in the past. If the debtor took out the car loan less than two and one half years ago, they cannot cram down on the car. That means that under Chapter 13, they would have to pay the full loan amount back in monthly payments. If the loan was over 2.5 years old, then the debtor could cram down the loan and pay the Fair Market Value, which is often much less than the loan balance.
