Vehicle Loan

[coma]

My husband and I have a vehicle loan that is being paid outside of the plan. It was about $1300 past due, and the loan company filed a claim for the amount of the arrearages and is being paid by the trustee for the part that is past due. we have been current since we our plan started, though.

The loan company is trying to collect on the past due amount, though they have received payment on it through the trustee. My dumb attorney told them to contact us, since it is outside of the plan, and they sent us a snotty letter to that affect.

My question is, can they repo or even demand the arrearages, since it is included in the pla and we are current on our payments at this point, since th claim was filed?

ETA: The loan company wants us to pay more than the payment to get caught up, but we have no extra money...they must not realize how a 13 works.

[lrprn]

My husband and I have a vehicle loan that is being paid outside of the plan. It was about $1300 past due, and the loan company filed a claim for the amount of the arrearages and is being paid by the trustee for the part that is past due. we have been current since we our plan started, though.

The loan company is trying to collect on the past due amount, though they have received payment on it through the trustee. My dumb attorney told them to contact us, since it is outside of the plan, and they sent us a snotty letter to that affect.

My question is, can they repo or even demand the arrearages, since it is included in the pla and we are current on our payments at this point, since the claim was filed?

ETA: The loan company wants us to pay more than the payment to get caught up, but we have no extra money...they must not realize how a 13 works.

Sadly, the loan company probably understands perfectly how a 13 works. They could be trying to scare you into signing a reaffirmation agreement for your car. Did you purchase the car more than two years ago?

Another possibility (less likely) is that now that your car is caught up payment-wise, if your loan value is considerably less than the ootential resale value of your car, the lender may be angling to repossess it and get their value back out of the car that way.

Can you prove that you aren't in arrears payment-wise? If you can, then march yourself back to your lawyer and make him/her help you with this. Even if you are paying your car loan outside your plan, your car is still a secured asset within your bankruptcy and deserves your lawyer's attention.

[coma]

THe loan is 16 months old, but we're under the old law, and not trying to cram down or anything. Reaffirmation wasn't even mentioned.

In February, when we converted, we were $1300 behind. We paid in Feb, March, April, May, June, July, and August, and I can prove it because I did bill pay. They are still trying to say we have to pay on the $1300 arrerage, even though they filed a claim and have received over $300 so far. Why should I pay them twice, especially since I have no extra money to do that?

Thanks for your take...I'm confused about this...

[lrprn]

THe loan is 16 months old, but we're under the old law, and not trying to cram down or anything. Reaffirmation wasn't even mentioned.

In February, when we converted, we were $1300 behind. We paid in Feb, March, April, May, June, July, and August, and I can prove it because I did bill pay. They are still trying to say we have to pay on the $1300 arrerage, even though they filed a claim and have received over $300 so far. Why should I pay them twice, especially since I have no extra money to do that?

Thanks for your take...I'm confused about this...

Our mortgage company did exactly what your car lender is doing - said we were in arrears one month when we filed (we weren't) and filed an official objection to our plan. Our lawyer told us that most folks don't want the hassle so they agree to pay the extra just to get confirmed. We decided to fight it - and voila! The objection was removed last week! However, the scumbags still charged us $75 for their lawyer's "protection of their asset" and added it to our mortgage. Any way to make a buck off of us is ok these days as long as they make at least some bucks in the end

Hope you get a good resolution to your issue too. Keep us posted, ok?

[coma]

Ruthless...I know!

I'm glad it worked out for you...I've got my fingers crossed on this, though. I can't pay the regular payment plus some more, because there just is no more money!

[Jman30]

Our mortgage company did exactly what your car lender is doing - said we were in arrears one month when we filed (we weren't) and filed an official objection to our plan. Our lawyer told us that most folks don't want the hassle so they agree to pay the extra just to get confirmed. We decided to fight it - and voila! The objection was removed last week! However, the scumbags still charged us $75 for their lawyer's "protection of their asset" and added it to our mortgage. Any way to make a buck off of us is ok these days as long as they make at least some bucks in the end

Hope you get a good resolution to your issue too. Keep us posted, ok?

HA! My mortgage company did the SAME thing! They filed a claim saying I was one month in arrears and I was not. They were sneaky too....technically, the mortgage is due on the 1st of the month, right? Well I had automatic draft from my bank account on the 10th of each month, the day I got paid. The Mortgage company (who shall not be named....*cough* Household *cough* *cough*) said that was not a problem, as long as you let them take the money from your account each month, there was no "due date" as long as they could draft it on the date you said.
Well, the scumbags filed the claim BETWEEN the 1st and the 10th, saying I was late since I hadn't paid on the 1st.

It is amazing that they can get away with things like that.

[lrprn]

HA! My mortgage company did the SAME thing! They filed a claim saying I was one month in arrears and I was not. They were sneaky too....technically, the mortgage is due on the 1st of the month, right? Well I had automatic draft from my bank account on the 10th of each month, the day I got paid. The Mortgage company (who shall not be named....*cough* Household *cough* *cough*) said that was not a problem, as long as you let them take the money from your account each month, there was no "due date" as long as they could draft it on the date you said.
Well, the scumbags filed the claim BETWEEN the 1st and the 10th, saying I was late since I hadn't paid on the 1st.

It is amazing that they can get away with things like that.

Yep. Must be the latest shell game to legally put the screws to consumers who file. It probably gives the companies a tidy return on their time investment too or they wouldn't do it. At least ours only got $75 off us...well at least so far. I was reading about how some mortgage company charged a Ch 13 debtor a late fee every month for five years since they were in arrears one month when they filed. They found out about the thousands said to be owed when their plan was over and they could again get bills from their mortgage company. Very little justice in this world unless you have lots of dollars to throw at stuff like this, I tell you.

[Jman30]

Yep. Must be the latest shell game to legally put the screws to consumers who file. It probably gives the companies a tidy return on their time investment too or they wouldn't do it. At least ours only got $75 off us...well at least so far. I was reading about how some mortgage company charged a Ch 13 debtor a late fee every month for five years since they were in arrears one month when they filed. They found out about the thousands said to be owed when their plan was over and they could again get bills from their mortgage company. Very little justice in this world unless you have lots of dollars to throw at stuff like this, I tell you.

lrpn,

That whole late fee thing?? They tried that with me too. At one point, I pulled copies of my credit report to make sure everything was updated as "included in BK." And there was my mortgage company, hitting me with 30, 60 and 90 day lates on my credit reports even though they were being paid through the Court and the one month arrears was also being paid through the Chapter 13.
I went through the roof. I wrote letters, DEMANDING that they stop reporting the late fees. I provided copies of my Chapter 13 filing, the copies of the claim that they filed and the copy of the judge's approval of their claim. I sent the letters by certified mail and copied my attorney and the Trustee and the lawyer who represented the mortgage company.

let me tell you...not only did I get the late fees taken off my credit, they removed the entire mortgage loan from my credit!!!

[lrprn]

let me tell you...not only did I get the late fees taken off my credit, they removed the entire mortgage loan from my credit!!!

Good for you, JMan! Those of us in bk salute you - you are a great role model for all of us!