2 questions about chapter 13

[MovingForward]

I have 2 questions. The first one is that I have filed a chapter 13 and am also seeking employment at the moment. Since I have filed the creditors will not call me at work right? I am assuming that the stay is in effect and then when confirmation takes place this bars them from calling.

Secondly I received a letter from one of my creditors today (the bank that has may car loan), saying that they are going to report me for late payments on my vehicle. I was never late with any payments before I filed and after filing I have made my 3 plan payments. Since I have not been confirmed as of yet my creditors have not received anything. The bank that has the note for my car loan did file a claim in my bk case. I am going to fax the letter to my attorney but was wondering what thoughts any of you might have.

Thanks for any input as always.

[breathe]

Our BK13 plan calls for paying off our debts in 5 years. The trustee took what was owed on the vehicle and divided that by 5 years. (60 months) and that is the amount that they have been distributing to the loan holder. We were notified we are delinquent in our payments. It turns out that the amt being sent to them by the trustee is less than the monthly payment due to it being stretched over 5 years.
Our BK13 took 10 months to confirm - during this time the car payment was disbursed so they were receiving the payment - just not the amt they thought they should get. Their on my list to call this week to see if can work something out.

[HHM]

1. Correct, creditors should not be contacting you at work.

2. Did you include you car payment as part of your chapter 13 plan (dumb move by the way), you want to make the car payment directly, not have the trustee do it for you.

[breathe]

How would you keep the car payment out of the BK13 w/o being untruthful?
I was asked by my attorney to provide a credit report from the 3 agencies so that we would have an accurate picture of all the creditors and probably to avoid such a situation.

http://www.alperlaw.com/chapter_13.html under the 'General Guidelines In Completing Your Bankruptcy Questionnaire." says:

List All Creditors. You are required to list all creditors, including your mortgage company and auto loan or lease company. You may not pick and choose the creditors you list on your bankruptcy schedules. You may, however, decide to reaffirm debts to certain creditors.

[oldrocker]

How would you keep the car payment out of the BK13 w/o being untruthful?
I was asked by my attorney to provide a credit report from the 3 agencies so that we would have an accurate picture of all the creditors and probably to avoid such a situation.

http://www.alperlaw.com/chapter_13.html under the 'General Guidelines In Completing Your Bankruptcy Questionnaire." says:

List All Creditors. You are required to list all creditors, including your mortgage company and auto loan or lease company. You may not pick and choose the creditors you list on your bankruptcy schedules. You may, however, decide to reaffirm debts to certain creditors.

Of course the car loan would be listed as a creditor. What HHM was referring to was not including the car loan payment within the chap 13 payment i.e. you make it directly. We are paying our house, truck and boat payment outside of our 13 plan, the 13 payment will only cover taxes, lawyer fee and trustee fee. Now there may be some reason your lawyer put your car loan in the plan that we don't know about either. Bk is definatly not cookie cutter, they are all unique in there own way.

[Flamingo]

I have 2 questions. The first one is that I have filed a chapter 13 and am also seeking employment at the moment. Since I have filed the creditors will not call me at work right? I am assuming that the stay is in effect and then when confirmation takes place this bars them from calling.

Secondly I received a letter from one of my creditors today (the bank that has may car loan), saying that they are going to report me for late payments on my vehicle. I was never late with any payments before I filed and after filing I have made my 3 plan payments. Since I have not been confirmed as of yet my creditors have not received anything. The bank that has the note for my car loan did file a claim in my bk case. I am going to fax the letter to my attorney but was wondering what thoughts any of you might have.

Thanks for any input as always.

Your first question was answered. I am being brief as to your second question. Was your vehicle "crammed" into your Chapter 13 plan or is your Trustee making the payments for you as part of the Plan? "Cramming" a vehicle is done when you have been financing the vehicle for a certain period of time; the attorney would take the blue book or other similar value of the car and put that amount into your plan, plus maybe added interest to keep the creditor happy. When that is done, the payment is made to the creditor by the trustee. If your vehicle was not "crammed" into your Plan, then your Trustee is making your straight car payments.

Since you have not yet received your confirmation, no creditor has yet received a payment. Therefore, they are reporting you as late. Note it is really no big deal because once you are confirmed and the payments start, your creditors will start listing the account as being under BK. Later on you can clean up your credit reports and have the late payments or chargeoffs removed that were done after your filing date. If you were late prior to your filing, that will stay on your reports.

As long as the creditor that has your car loan has filed a claim, they know you have filed BK and they have the filing date. It wouldn't take much for them to figure out the date of your last payment compared to your filing date. You can get that straightened out later on your credit reports after you are settled in your Plan for several months.

[breathe]

Of course the car loan would be listed as a creditor. What HHM was referring to was not including the car loan payment within the chap 13 payment i.e. you make it directly. We are paying our house, truck and boat payment outside of our 13 plan, the 13 payment will only cover taxes, lawyer fee and trustee fee. Now there may be some reason your lawyer put your car loan in the plan that we don't know about either. Bk is definatly not cookie cutter, they are all unique in there own way.

Thanks for the info. This place is a wealth of knowledge - Wish I would have found you all 10 months ago.

[MovingForward]

Thank you all for your responses. Flamingo I especially appreciated your information on the car loan. My attorney advised me to include the car payment in my bk otherwise I may not have done it but at the time of filing I was a complete mess. I'm still a bit unsettled but better than I was before.

You all are wonderful

[MovingForward]

Breathe since yours took 10 months to confirm did your creditors (including your vehicle loan) not receive any payments from the trustee until you were confirmed?

[arkienurse]

Breathe since yours took 10 months to confirm did your creditors (including your vehicle loan) not receive any payments from the trustee until you were confirmed?

Mine took a year to confirm. No money at all went out until confirmation, not even to my lawyer or the trustee. It just sat there and built up to $14,000 or so. Then every bit of it went out in one swoop the month after we were confirmed. The lawyer was paid off, and a big dent was made in our secured debts.

[breathe]

Breathe since yours took 10 months to confirm did your creditors (including your vehicle loan) not receive any payments from the trustee until you were confirmed?

In IL it may be different as the car loan started to be disbursed beginning the 3rd month. The trustee payment disbursement started at the same time

[rrockinggramma]

the car lender will discover that it will get paid what the trustee's pays it and that as long s those payments are being made by the trustee, they cannot repo the car. If they did, they would be in violation of the auto stay and the trustee would not be happy. This is an issue for the trustee and the car company and your attorney to work out. The car company has no leg to stand on here.

and if theyare reporting late payments on your cra AFTER BK filing date, then they are in violation of the FCRA and you and your attorney need o get that straightened out.

[MovingForward]

Thank you again all of you for your responses. I am so grateful to have found this website and look forward to being able to help others who are going through this hell.

I faxed the letter I received from the bank who holds the loan to my vehicle and requested that he email me with his response. Every time I call his office his assistant is very quick and abrupt with me so I though that faxing and requesting an email from him would be more effective.

All of you have a wonderful evening!