[CLBS] Outrageous Interest

[Cam Phillips]

One way to deal with this would be Ch 13.  The interest becomes 6%,  and there's a lot more flexibility.

But is the lender secured w/o it's name on the title?  As to the TR as bfp,  I don't think so.  Look at that b4 you do anything else.  

We regularly negotiate the int down with the hi int lenders in chap 7,  but if the trust really owns the truck there is NO interest on its non exempt value in a 13.

Interesting issues.

Cameron Phillips
Attorney at Law
924 Sherman Ave.
Coeur d' Alene, Idaho 83814
208  667 5437

On Aug 4, 2012, at 11:19 AM, Ryan Earl <ryantearlattorneyatlaw at yahoo.com> wrote:

> Fellow list-mates,
> 
> I am looking for some insight on a "secured" transaction regarding a clients semi-truck. Client took semi-truck title to a title loan company and borrowed money for repairs. Client made several payments and then filed bankruptcy. (This was not the deciding factor, or only factor, but has quickly become an issue.) The clients need the semi for work--He is an independent long haul truck driver. Interest on this agreement is 17.5% a month--outrageous, I know. I don't believe that this company has filed an UCC lien, but does have the title. Originally my clients were going to reaffirm. I just do not think that is an option. Now to the questions:
> 
> 1) Is there away to argue that the interest should not have accrued during the automatic stay and prior to the reaffirmation agreement, something along those lines? Or, more importantly,
> 
> 2) Has anyone disputed the secured nature of these loans? I am think about amending the debtors' intent and then file a motion to determine dischargeability---
> 
> 
> Any insight or thoughts would be greatly appreciated.
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