Creditor not making a claim

[billybob37]

What happens when a secured creditor doesn't make a claim? This would be for a car. It was scheduled for $3000.00. They have 2 days left to make a claim.

[rrockinggramma]

well you might want to file a claim for them. The concept is that the debt would be discharged but since it is a secured debt, you might run into problems afterward. You have the car right? You might want to give them a call too cause someone in their BK department must have missed the boat.

[HHM]

Generally, it really does not matter if secured creditors file claims.

Are you paying this creditor inside or outside the plan?

If inside the plan, then a claim needs to be filed (however, you should NEVER EVER pay a secured creditor inside the plan unless forced to by the trustee).

If outside the plan, then it does not matter if they file a claim. The lien the creditor has is valid regardless if the creditor files a claim.

These comments assume you still have the car and plan on keeping it, if you are surrendering the car, then, if the creditor does not file a claim, that creditor does not get paid and the balance due is discharged, (assuming your chapter 13 is ultimately discharged).

[billybob37]

I do have the car and am paying it inside the plan. So we need to call them and tell them to file a claim?

[HHM]

Why pay it inside that plan.

Are you paying the regular monthly payment, or simply the arrears inside the plan.

If at all possible, you DO NOT want to pay the regular monthly payment inside the plan.

[lrprn]

If at all possible, you DO NOT want to pay the regular monthly payment inside the plan.

Agree with HHM *except* when paying your car payments inside the plan stretches out the payments over five years and you finish the plan with fully paid off cars. This strategy can sometimes make your monthly Ch 13 payment a bit smaller, so Ch 13 lawyers will recommend this strategy when the results are in the debtor's favor.

[billybob37]

The payment and the arrears are being paid inside the plan. My lawyer said it would be best this way. On a side note I am paying my mortgage outside the plan.

[billybob37]

I also just noticed that they have not filed a claim on a credit card that I had with this bank either.

[rrockinggramma]

You will want to be sure that your vehicle gets paid. So check with your attorney to be sure the trustee will make the payment on the vehicle inside your plan. I wouldn't worry about the credit card. LOL

[MajorMike]

We are paying our vehicle INSIDE and we love it because it is stretched out, paid without us having to worry and yes, we know that the trustee is getting their cut but the interest is much lower too, so it makes sense for us.