Help! Can they repossess your car after you file chap 7???

[nutshell143]

Here is our problem, our car was officially paid off on June 10, 2007. However, we still owe $1127 in late fees and they are trying to say that these are regular car payments. I have attempted to work with their collections department as well as their legal department. I informed them that we filed Chapter 7 on 7/12/2007 and I faxed them over a copy of it. They are telling me that it doesn't matter we have to pay it or they will come and get the car.

Well, tonight they showed up and attempted to take the car. Our kids just told them that we were not home and they left a card for us. We filed the papers ourselves since we could not afford the attorney fees. We had them prepared for free through Volunteer Legal Services.

We plan on keeping the car since all we owe is late fees. Is this true can they really repossess our car even though we already filed?????

[lrprn]

Here is our problem, our car was officially paid off on June 10, 2007. However, we still owe $1127 in late fees and they are trying to say that these are regular car payments. ... We plan on keeping the car since all we owe is late fees. Is this true can they really repossess our car even though we already filed?????

Two important questions first....did you include the car loan on your bankruptcy forms? And did you sign any forms to reaffirm the car loan during or after you filed?

[wayne-o]

in addition to lrprn's questions, if u still owe the late fees...your car is not "officially paid off"

[nutshell143]

It is listed

Yes the car loan is listed on the bankruptcy and it is also listed as wanting to reaffirm. I have tried and tried for the past 2 weeks to work with the lender regarding the late payments but I keep getting passed around and even the legal department didn't want to help me out.

I am very frustrated at this point and especially after a repo guy showed up at the door tonight.

So I "technically" am not paid off because I owe late fees but does this counta as a late payment? Because they are telling me that I owe June & July payments right now. I asked for a breakdown of our account and finally got it after speaking to half of the finance company. There were fees with codes on there that I did not understand. When I called and asked the collection supervisor could not even tell me what they were for. She said she woud get ahold of accounting and call me back. Never heard from her so I called back and called again and again and she still has not heard from them. Hmmm the shoe is on the other foot now-I am calling them all the time instead of them calling me.

So my question???? If I filed the chap 7 and then called the lender and informed them of the filing and faxed them the papers can they still repossess the car at this point? Or do I have to call and reaffirm. Do I have to make these payments right now or do I wait to see if they reaffirm? We really do not want to lose the car at this point since all we owe is the late fees and our other car we let go back in November since it was so upside down and we knew we were going to file. We need this car right now but we have some issues on the amount owed for late fees and unexplained charges!

[HenriettaHen]

Nutshell, whatever charges accrue on your car loan will add to your payoff balance, thereby increasing the number of payments you have left on the loan. As far as the loan company is concerned, you have $1127 left in installments (however many that amounts to).

And now those installments are late, so you are getting into the repo hassle.

If you can pay this, you should. In order to keep the car through your bankruptcy, you need to be current on your auto loan. Even if you are reaffirming. In your view these are late charges, but the bank views them as late payments due on the balance of the loan.

on edit; Nutshell, you don't mention the value of the vehicle or it's age.

And .. did you list your car payment as an expense?

How many car payments does $ 1127 represent?

another edit; If you decide to pay this, then it would be a good idea to call the lender and let them know immediately. Then, write the separate checks for the months of June, July, and perhaps even August as if they were your regular car payments.

This way they will show on your records as individual payments, which will make much more sense to the Court than a lump sum paid after filing.

This appears to be a misunderstanding on your part - so you may have to make a course correction here. Don't panic, just see how many car payments you can come up with and call the lender. The idea right now is to keep the car by coming current on the loan.

Let us know how this works out.

[CPO]

If there is a statement of intent to reaffirm on file (you have 30 days from your filing date to file one) ...you have 30/45 days from your creditors meeting to place that intent into action...or you would lose protection from the stay for that property....

In the meantime, your protected by the automatic stay, unless your creditor files to lift the automatic stay and the court agrees.

Generally, you must catch up on your payments before you sign your reaffirmation.

Your creditor must agree on the terms of your reaffirmation.

You filed on July 10, did you file your statement of intention at the same time? when is your 341 meeting?

Something is missing here, or your creditor is repoing a portion of the Trustees estate....

Not good...

CPO

[Minnymouth]

One of the problems of filing pro se is THIS, these are things that your attorney would handle for you...... now, you have to go thru the process of trying to do it yourself. And the lender does not want to talk to you....... you are and should be under "the protective stay" thru the bankruptcy.

This lender is in violation....... did you notify them that you filed? Did the Court list them on your matrix?

Now you need to send them a letter of to Cease their contact that they are in violation of the automatic stay.....

Even thou you want to reaffirm, they are under no obligation to reaffirm if they don't want too...... (hence, they see car that you have almost paid in full - that they can demand back and make more money off of by reselling it), all because of late fees, penalties that you still owe.

1st make sure they are included in your matrix and listed on your bankrtucpy..... and take it from there....

Also since the auto is almost paid in full, lots of equity which may not be exempt, the Trustee is in a postion to seize your auto (an asset) for sale to pay the creditors.......

Had you considered this???

[SinkingFast]

When you filed BK, you fell under the protection of the Automatic Stay. Creditors aren't supposed to be contacting you. ProSe or not, a Creditor contacting a Debtor/Filer is against the Law.

Since you're technically in arrears on your car loan, the Lender would have to file a "Motion to Lift Stay" to do anything with or about your car.

I'd suggest you get a PACER acct. Check on your Case and see what's going on.
Look to see if the Lender has filed a "Motion to Lift Stay". Until the Court grants the MTLS, the Lender cannot proceed with repo of your car.

I'm thinking, if you really wanna keep this car, you're probably gonna have to come up with the money, lump sum, and pay off the Lender. You're beyond your original contract at this point. The amount due is not for regular payments. It's accumulated late fees and penalties.

[nutshell143]

The car is a 97 Mustang GT Convertible. There is equity in it because the car is in excellent shape.

All of our paperwork including our intent to keep the car was all filed at the same time.

Yes the payments are listed on our expenses. Even with the equity it is still protected assets.

I went ahead and made a payment this morning I paid what I would normally pay on a car payment. So now I only owe $798.98 in late fees. I called the legal department of our finance company and they stated that they had received my fax and it had been forwarded to a manager yesterday. I tried to give them the MTCN number from Western Union but she said my account is not in the legal department and I would have to go through the collection department. She transfered me and I spoke to someone and he called the tow company and canceled the repo.

Our 341 in on August 20, I thought that even if you were late you were protected until then from them being able to repossess. I do not trust this finance company (Lobel Financial) I have heard horror stories about them. I just want to finish up paying the late payments and be done with them. I can not afford to pay it off completely right now. We are on a very fixed income and every penny is accounted for right now. Plus I have a bad feeling that even if I do try and work with them they would still sneak up and steal the car.

Any suggestions? Am I covered because they confirmed to me that they got the copy of the Chap 7?

[JRScott]

If they acknowledged the receipt of the BK number and such they fall under the automatic stay. They can't do anything to you without first going to the court and filing a Motion to Lift Stay.

Write down who told you this .

Technically the car belongs to the estate under the Trustee's care until he releases it back to you. If they violate the automatic stay, especially if they try to repo or actually do repo the car, I would immediately inform the Trustee. Let's just say they'll wish they had followed the stay.

I hope this settles things up for you and things go more smoothly.