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Car Payments Included but paid separately?

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    Car Payments Included but paid separately?

    My auto loan is listed on my bktcy papers as part of the bankruptcy but to be paid by me directly to the auto finance company. My bankruptcy payment plan is set to be completed about 8 months before my auto loan date of completion. I am assuming this means my car will be considered paid off when I complete the bankruptcy payment plan. Will the auto finance company automatically send me my car title or will I have to fight to get it??? I'd appreciate any information.

    #2
    Was the loan modified (i.e. a Cram Down) at all?
    Latent car nut.

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      #3
      It sounds like your vehicle is being paid outside the Plan pursuant to the terms of the original contract. If that is correct, you will get a lien release/title once you have fulfilled the terms of the contract. This should be independent of, and not impacted by, the bankruptcy discharge - again, if you are paying the lender per the terms of the contract.

      Des.

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        #4
        For me, it was exactly how despritfreya posts. I had a new vehicle that I purchased weeks before filing a Chapter 13. I obtained a 72 month purchase (on purpose due to filing). At the time of filing my vehicle was not in arrears so I paid outside the plan. But, those payments extended beyond the date of the Chapter 13 plan of 5 years. This is no different than a mortgage which also, almost always, exceeds the life of the plan. You just stick to the original contract terms, making your payments based on the pre-bankruptcy contract.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        I am not an attorney. Any advice provided is not legal advice.

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          #5
          It is not a cram down because my attorney said it wouldn't really make a difference due to my income. Yes, it looks like despritfreya said. It is independent from the bankruptcy because my payments did not change at all. What threw me off is that the auto loan finance company has locked or blocked my loan information. My account online access was reduced to just my name and account number. Automatic payments were disabled and when I ask what is my balance, they refuse to give me any information. Is this because they are bound by the court order? I keep making my payments on time because of course I need my car. Can't wait for this to be over with. Thank you all for your feedback, much appreciated.

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            #6
            Hi..you are correct - the loan information is being blocked to ensure your lender doesn’t appear to be attempting to collect a debt while you’re in your bk plan.
            Filed Chapter 13 - 07/20/12
            Discharged 8/2/16

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