Repossession of Vehicles

[klux]

I was doing reserach and came acros this statement:
"If any secured loan payment of lease payments come due before the debtor's plan is confirmed (typically home and automobile payments), the debtor must make adequate protection payments directly to the secured lender or lessor - deducting the amount paid from the amount that would otherwise be paid to the trustee."

Here is my question: We will be doing our signing on 10/9, first meeting of creditors will be 11/14. We have (4) secured loans. 1 we are surrendering. One was due on 8/13, so at the time of filing will be due for 8/13, 9/13. One is due on 9/27. The other one will be current. But do I have to pay these payments through the time the plan is confirmed and also the plan payments? IF the meeting of creditors is 11/14, then that could mean it doesn't get confirmed for 45 days from my understanding. I don't want my vehicles repossed during this process, but I don't know how I can make the payments and also the payments to the trustee. WI law doesn't require a lender to have to get a court order to reposs a vehicle.

Please help me understand this.

[lrprn]

The answer depends on who is responsible for making the payments on the 4 secured loans.

Looking at the 4 loans, which (if any) does your plan have the trustee making the payments "inside the plan" and which (if any) does your plan have you making the payments "outside the plan"?

For example, in our Ch 13, we make our mortgage payment every month "outside the plan" but our trustee makes our car payments "inside the plan".

Any payments that the trustee is going to make "inside the plan" will be hanging on waiting for disbursements that most trustees send out once a month, usually on the last day. Don't worry about paying those.

Any payments that you are supposed to make "outside the plan" you need to make asap because the loan payment amounts were kept out of your plan for that specific purpose.

So.....who is responsible for paying each of your secured four loans?

[klux]

In WI, my attorney said all vehicle payments need to be paid in the plan. They are all to be included. My mortgage is to be paid "outside" along with my second mortgage, but the arrears are to be paid "inside" the plan.

[lrprn]

In WI, my attorney said all vehicle payments need to be paid in the plan. They are all to be included. My mortgage is to be paid "outside" along with my second mortgage, but the arrears are to be paid "inside" the plan.

Then you are responsible for paying your first and second mortgages' regular payments on time every month.

If you pay the first mortgage late, then you are opening the door wide open to your lender requesting your automatic stay be lifted to start foreclosure proceedings.

If you pay the second mortgage late, depending on the value of your home and the state of the mortgage market where you live, then even your second lender could also request for the stay to be lifted, although this is much less likely than it is with your first mortgage.

Your mortgage payments along with your trustee payments are MUST PAY AND MUST PAY ON TIME every single month.

If you can't afford both mortgage payments, then it could be that your house is too much of a financial drain for your current income. You have three choices - find more income, cut expenses, or surrender the house voluntarily before the mortgage companies can foreclose.

[klux]

Maybe I wasn't clear, I'm not worried about the mortgages at all. I'm paying them, no problem. I didn't think I ever made mention of that, I was asking about the vehicle loans that are being paid through the plan, if I needed to make payments directly to lender up until the plan is confirmed, and also payments into the plan to the trustee. That's what my question was.

"If you can't afford both mortgage payments, then it could be that your house is too much of a financial drain for your current income."

I didn't say that I had an issue with the mortgage, why would you assume this? Have I done something to get you mad or something? I don't feel anyone on here is proud to be where they are and when someone says, you should give your house up, I kind of take offense to that.

[lrprn]

I was asking about the vehicle loans that are being paid through the plan, if I needed to make payments directly to lender up until the plan is confirmed, and also payments into the plan to the trustee.

If your vehicle loans are being paid by your trustee, then you don't need to pay them before your plan is confirmed.

Have I done something to get you mad or something? I don't feel anyone on here is proud to be where they are and when someone says, you should give your house up, I kind of take offense to that.

Klux, you haven't done anything to make me or anyone else here mad. This is one of those challenging situations where I was trying to help but because we have to communicate just through writing over several back and forth communications, I misunderstood your situation.

I thought you were having trouble paying your mortgages after you filed - that's the only reason I mentioned anything about your house. My mistake and please accept my apologies if I hurt your feelings and made you mad - that definitely was not my intent.

Sometimes this way of communicating accidentally veers off course and assumptions are made that are incorrect - this is a perfect example. Hope you'll forgive, continue to post questions, and enjoy the community here.

[klux]

Understood, thank you for the clarification:-)