Pre-Confirmation car payments not made, are we in trouble?!

[mylife]

We just realized that we were suppose to continue to pay our car note until confirmed so we have missed two months. The note is going to become part of the plan with the cramdown and right now we cannot afford the regular payment. What do we need to do?

Thanks!

[lrprn]

It sounds like your plan calls for you rather than your trustee to be responsible for making your car payments after filing, even after confirmation. If this is the case then you need to contact your lawyer immediately to share this news and find out what options you have at this point. After filing, after one or two missed months of payments that the filer is to make, many car lenders will petition the bk court to lift your automatic stay and start repossession efforts to take your car.

However, if your plan calls for your trustee to make your car payments after filing and after confirmation, then you not paying doesn't matter. The lender has to wait for your trustee to disburse the car payment after confirmation.

Which is your situation? The right answer depends on what your plan dictates.

[mylife]

The trustee will be making the payment after confirmation. We had our vehicle appraised at Car Max and are now waiting for the lender to approve the lower amount which is way less than what we owe. In reading the plan amendment, it states that we are to continue making the regula payment until confirmation which is next week.

[newbie2]

[QUOTE=mylife;504675]The trustee will be making the payment after confirmation. We had our vehicle appraised at Car Max and are now waiting for the lender to approve the lower amount which is way less than what we owe. In reading the plan amendment, it states that we are to continue making the regula payment until confirmation which is next week.[/QUOTE]

Call your attorney today. Since you are a couple of months behind on the payment, those arrears will have to be addressed in your plan.