Vehicle Loan / Chapter 7

[InDebtInMD]

I picked up my chapter 7 papers from the attorney today and am looking them over.

He is including our minivan in the bankruptcy, even though we would like to keep it. The van is currently worth about $9800 and we have about $10,800 left to pay on the loan, so hooray we do not have any 'equity' in it.

The van payment is made through our credit union - they take $250 from my wife's paycheck every two weeks, and every month they make the van payment of $400.

The attorney says that as long as the payments are up to date we should be OK. The payments are up to date, although I did take them up on a skip-a-payment offer they sent a while back (for $25).

As long as we are current on the payments, is there any reason they would try and take the van?

[HHM]

You should be fine.

One thing you will have to arrange is alternative payment method. As soon as you file BK, no creditor can do anything to collect on a debt, which means the Credit Union will stop any auto-debit of the car payment. So you will need to make sure you stay current on your payments during the BK.

The reason your attorney listed the car is because you are required to list ALL your assets and liabilities.

[InDebtInMD]

Signed and sent the papers back to the attorney last week. Should be filed anytime now.

Thanks for the advice re: the car payment. I made a general inquiry to the credit union about making extra payments on the van and now have the forms I need. Cool thing is, our payments are taken out at the end of the month, so the April one went without a hitch. I figure I'll be paying the one due 5/31 via check.

I also signed up for PACER - will be nice to keep track of things.