Just filed, silly question about car payments

[sonichrome21]

Hey guys, awesome forum! I just filed for BK7 and included the car but I was planning on re-affirming it. Since I've filed, do I just stop making payments on it or keep paying? Im about 2 months behind and my creditors meeting is scheduled for Dec 7th. Thanks!

[tadbitconfused]

I was told if I wanted to keep my car I had to have my payments current.

[HHM]

Did you file without an attorney...based on what you said, it sounds like you didn't
BECAUSE...

If you file a chapter 7 while behind on payments to secured creditors, the car companies will repo the cars after lifting the automatic stay. You cannot go into a chapter 7 behind on payments to secured creditors if you want to keep the underlying property because a chapter 7 provides no inherent mechanism to make-up past due payments. Keep in mind, when it comes to secured debt there are 2 types of liability, (1) Personal liability and (2) the Lien. In BK, the only liability that gets discharged is your personal liability, i.e. your promise to make payments. However, the Lien on the property which secures the note remains valid notwithstanding the BK, so the creditors ALWAYS has recourse to retake the property upon a default. Thus, if you go into a chapter 7 already in default...they can take the item of property.

If your intention is really to keep the cards, at this point, I wouldn't make a payment and wait until the car finance companies file a motion to lift the automatic stay (or their lawyer contacts you). When you get the Motion to Lift Stay, you will want to try to negotiate an "Adequate Protection Order" and "Reaffirmation." Basically the APO is would be a plan for you to make-up the payments you missed, and the reaffirmation makes you personal liable for the debt after BK in the event you default in the future. The catch is, the car company does not have to agree and can simply get the automatic stay lifted and repo the car because you are already behind on payments.

If they don't file a Motion to Lift stay in within 10 days after your 341 meeting, you will need to contact the car finance companies, ask for their Bankruptcy department and see if anything can be worked out.