Ok, here is my situation. This is my first time in the last 18 months of my Chapter 13 that I am really worried. Everything has been smooth sailing until....
Ford Credit hired a lawyer, who filed a Relief From Stay, saying that they had not received any payments on the vehicle over the life of the Chapter 13 (18 months). Part of the value of the car is secured, part is unsecured. They also wanted proof of insurance. No problems there. My laywer quickly followed up with a response, saying that I had made every payment on my plan, was completely current and it was up to the Trustee to decide when to pay, the case was confirmed, they had a chance to object before it was confirmed, etc etc etc And I have proof of insurance, so no problems, right?
Well yesterday, we got a "Reponse to Debtors Response for Relief Of Stay" from this lawyer.
First, he is claiming that, in fact, we are deliquent in our Chapter 13 payments, which is COMPLETELY FALSE. He provided some ridiculous table showing what he thinks we SHOULD have paid into the Chapter and what we actually have paid. If were were behind, the Trustee would terminate our plan. I don't know how they can accuse of that - my payment is taken out each month via payroll deduction. I have NEVER EVER been late. I am eating out of soup cans to avoid being late!!!!
Second, they are claiming that since originally, my mortgage was not in the plan and they were a Class 1 creditor, meaning they would be paid first, they never objected. The plan was modified a few times, but they never objected because they always remained a Secured, Clas 1 creditor. However, in February of 2005, my mortgage company filed a petition to be included in the Chapter 13 (due to being one month behind) and this was granted. Ford says they NEVER received notification of this modification and that this moved the Mortgage up to Class 1 and then down to Class 2. And they have never received any money from the Trustee yet. Because of this, they say it raises an "interesting question of whether or not a Trustree can decide not to pay Ford Credit, especially since the car is a depreciating asset." They request relief from Stay and demand possession of the vehicle.
Now...help me out here. Isn't the point of a Chapter 13 to protect these assets? I have NEVER been late paying the Trustee, EVER. In 18 months. Some months, I even pay early!!!! How is it my fault that the Trustee has not paid Ford Credit? I have ZERO control over it....the Trustee gets my money and what he does after that is beyond my control.
Has anyone heard of this? My lawyer seemed to be a littler nervous and told me he "was working with Ford" and would get back to me.
This is like kicking me when I am down...it is bad enough to be living paycheck to paycheck like this, but I have held up my end and paid my 13. Can they really take my car?? Will the Court even give this any weight???
Any help would be appreciated and sorry for the long post!!
Ford Credit hired a lawyer, who filed a Relief From Stay, saying that they had not received any payments on the vehicle over the life of the Chapter 13 (18 months). Part of the value of the car is secured, part is unsecured. They also wanted proof of insurance. No problems there. My laywer quickly followed up with a response, saying that I had made every payment on my plan, was completely current and it was up to the Trustee to decide when to pay, the case was confirmed, they had a chance to object before it was confirmed, etc etc etc And I have proof of insurance, so no problems, right?
Well yesterday, we got a "Reponse to Debtors Response for Relief Of Stay" from this lawyer.
First, he is claiming that, in fact, we are deliquent in our Chapter 13 payments, which is COMPLETELY FALSE. He provided some ridiculous table showing what he thinks we SHOULD have paid into the Chapter and what we actually have paid. If were were behind, the Trustee would terminate our plan. I don't know how they can accuse of that - my payment is taken out each month via payroll deduction. I have NEVER EVER been late. I am eating out of soup cans to avoid being late!!!!
Second, they are claiming that since originally, my mortgage was not in the plan and they were a Class 1 creditor, meaning they would be paid first, they never objected. The plan was modified a few times, but they never objected because they always remained a Secured, Clas 1 creditor. However, in February of 2005, my mortgage company filed a petition to be included in the Chapter 13 (due to being one month behind) and this was granted. Ford says they NEVER received notification of this modification and that this moved the Mortgage up to Class 1 and then down to Class 2. And they have never received any money from the Trustee yet. Because of this, they say it raises an "interesting question of whether or not a Trustree can decide not to pay Ford Credit, especially since the car is a depreciating asset." They request relief from Stay and demand possession of the vehicle.
Now...help me out here. Isn't the point of a Chapter 13 to protect these assets? I have NEVER been late paying the Trustee, EVER. In 18 months. Some months, I even pay early!!!! How is it my fault that the Trustee has not paid Ford Credit? I have ZERO control over it....the Trustee gets my money and what he does after that is beyond my control.
Has anyone heard of this? My lawyer seemed to be a littler nervous and told me he "was working with Ford" and would get back to me.
This is like kicking me when I am down...it is bad enough to be living paycheck to paycheck like this, but I have held up my end and paid my 13. Can they really take my car?? Will the Court even give this any weight???
Any help would be appreciated and sorry for the long post!!
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