Just tried to pay my car payment and my online account is cancelled!!!

[$$only4ever]

I filed under the old law and paying for my vehicle through Chrysler Financial outside of plan. They, too, took online access away from me. I do just what Pa does. I made a copy of an old statement and send my payments in monthly. Before I filed, I did make an extra payment (advice of my attorney) so I am always one month ahead to avoid any repo problems. My vehicle will be paid off before my plan is completed.

[SUB]

FYI, by not reaffirming, the car loan would not help you reestablish credit after the BK.

Is this true with home loans as well?

[movingon]

FYI, by not reaffirming, the car loan would not help you reestablish credit after the BK. I had perfect payments for a year on my car, filed BK, then the online access went away, statements went away, AND the reporting to the agencies went away even though I had made 6 payments after the BK. I called multiple times, but they were legally right to do all of that. I ended up giving my car back to them since it wasn't helping my credit rebuilding process.

After getting another car, I ended up with a cheaper payment (higher rate, though) and a loan that reports to all agencies. It was not worth it to me having a car loan that didn't give me credit for the payments. However, if you have an excellent rate, that could weigh into the factor of keeping it. Good luck!

[PaKettle]

Thanks for the explanation.....
I also see no reason for them to repo a car that someone is paying on.....

But something in the back of my head tells me it would be illegal for them to repo it if payments are kept up.

tell me if I have it right.....
***Is it by going bankrupt we are basically "CANCELING" the original loan docs to the vehicle so therefore they "could" technically repo it until we sign a re-affirmation agreement?
and a re-affirmation agreement is a legal agreement to "get" us back into the loan?

techno

Yes, that is the way I understand it. Maybe HHM or someone will verify that I have it right...

[technoreid1]

Thanks for the explanation.....
I also see no reason for them to repo a car that someone is paying on.....

But something in the back of my head tells me it would be illegal for them to repo it if payments are kept up.

tell me if I have it right.....
***Is it by going bankrupt we are basically "CANCELING" the original loan docs to the vehicle so therefore they "could" technically repo it until we sign a re-affirmation agreement?
and a re-affirmation agreement is a legal agreement to "get" us back into the loan?

techno

Yes, technically they could snatch your car even though you are making payments, as I understand it. But it's just never done. My attorney said out of all the clients (hundreds) he and his friends have had, they've never heard of it happening with a major loan holder. (It MIGHT happen with a small corner car lot type place if they were carrying your loan.) If you think about it, it just does not make sense for them to repo a car someone is paying on. Why would they? The whole point of repo'ing it would be to re-sell it and get someone else to make payments on it, but it's undoubtedly worth less now than what you are already paying.

[PaKettle]

SO another words with "ride through" (if the courts even allow it) an auto loan company CAN repo the car legally even though I am current on payments?

Thanks, techno

Yes, technically they could snatch your car even though you are making payments, as I understand it. But it's just never done. My attorney said out of all the clients (hundreds) he and his friends have had, they've never heard of it happening with a major loan holder. (It MIGHT happen with a small corner car lot type place if they were carrying your loan.) If you think about it, it just does not make sense for them to repo a car someone is paying on. Why would they? The whole point of repo'ing it would be to re-sell it and get someone else to make payments on it, but it's undoubtedly worth less now than what you are already paying.

[FreshLikeADaisy]

http://www.bkforum.com/showthread.php?t=22085

That's my post about paying through my automatic bill pay. One of my lenders would, the other wouldn't. Make sure if they will and it will be accepted. You know one more thing to deal with

Yeah, I remember reading that and thinking it was crazy the hoops you had to jump through with one welcoming what the other was flatly refusing... strange. I'm glad you got it all straightened out, though. Sounds like a pain in the keister!

[woohoogirl]

Pa, seems to me that your best bet is to set up automatic bill pay through your bank to that lender and forget the website, IF you don't want to reaffirm.

http://www.bkforum.com/showthread.php?t=22085

That's my post about paying through my automatic bill pay. One of my lenders would, the other wouldn't. Make sure if they will and it will be accepted. You know one more thing to deal with

[FreshLikeADaisy]

Pa, seems to me that your best bet is to set up automatic bill pay through your bank to that lender and forget the website, IF you don't want to reaffirm. I'm not sure I would sign anything if my intent was to avoid reaffirmation, and there's just too damn much in the way of clicky things on websites where, if you click there, it means you just agreed to x y and z in language you'd need a Philadelphia lawyer to explain. Me, I'd stay away from it. Maybe other people have different experiences, but since you're trying to avoid signing anything...

Techno, I think what you are referring to is a cramdown (?) which is something that is available in a Ch 13 reorg, but NOT a Ch7. (Someone correct me if I'm wrong...) Good luck!!!

[technoreid1]

I heard Is it possible to reduce auto payments in a BK?
Have you ever heard of this?

I guess this would pay some part in the "re-affirming" process??

thanks, techno

Techno, it's true that some lenders will repo a car in bk without first making a motion for lift of stay; whether it's ignorance or arrogance I'm not sure, but it's the smaller lenders and "we tote the note" car lots that do this most. It seems that many lenders are so used to not being challenged (esp by debtors with little to no resources) that they just ignore the law completely.

But I think you're good: in reality, if they're going to repo, they want no hassles from you, and you're working with Toyota directly. Toyota is a large lender, well aware of your bk and talking reaffirmation, which is best for them anyway. I can understand why you'd be concerned, but don't borrow trouble here; I think you're actually in good shape. Hope this helps!!!

[technoreid1]

SO another words with "ride through" (if the courts even allow it) an auto loan company CAN repo the car legally even though I am current on payments?

Thanks, techno

Technically speaking, the "fourth option" (surrender, redeem, re-affirm, ride-through

[PaKettle]

Getottathehole, it actually makes a lot of sense when you consider that filing bk makes it *illegal* for them to try to collect your debt -- that includes sending statements, email reminders, whatever, in addition to collection calls and letters. Rather than take the chance that anything on their website might possibly be construed as an "effort to collect a debt" under the law, they just remove your access to it. Simple and much safer for them legally.

If this happens to you on a debt you want to reaffirm (like a car you want to keep), just call and make other arrangements.

Although I am still not officially discharged I thought that maybe I could get back on my car payment site since my 60 days were over weeks ago. But no, still no access.

So will they reinstate me to the site after I am officially discharged?

And is there any chance they would try to make me sign something on the site that would trick me into "reaffirming" the debt, or would that be illegal? I'll read it carefully if I have to agree to anything to re-gain access, but I'm just wondering if they might try something like that? Anyone know?

[getouttathehole]

Getottathehole, it actually makes a lot of sense when you consider that filing bk makes it *illegal* for them to try to collect your debt -- that includes sending statements, email reminders, whatever, in addition to collection calls and letters. Rather than take the chance that anything on their website might possibly be construed as an "effort to collect a debt" under the law, they just remove your access to it. Simple and much safer for them legally.

If this happens to you on a debt you want to reaffirm (like a car you want to keep), just call and make other arrangements.

I'm not worried, we pay one vehicle through the mail anyway, just will have to do so with both now. We are not reaffirming (our lawyer advises not to as well), but if you do you would think then they could give you your online access back.

So if you file it makes sense but it still doesn't make sense with credit cards before you file. Best Buy cut off our online access after missing two payments, we got our statements online so we couldn't even access those!

[FreshLikeADaisy]

I've just gotta ask why they do this? Why maker it more difficult to pay your bill? They don't want the car back.

Even with CC when you get a couple of months behind they sometimes pull your online access.....it seems pretty stupid to me!

Getottathehole, it actually makes a lot of sense when you consider that filing bk makes it *illegal* for them to try to collect your debt -- that includes sending statements, email reminders, whatever, in addition to collection calls and letters. Rather than take the chance that anything on their website might possibly be construed as an "effort to collect a debt" under the law, they just remove your access to it. Simple and much safer for them legally.

If this happens to you on a debt you want to reaffirm (like a car you want to keep), just call and make other arrangements.

[gophermn]

Toyota did the same thing with me. And I am not worried one bit!
I was unable to access my online Toyota acct so I assume it was because of the BK. I make pymts through my bank so they will still get their $$$.

Toyota WILL send a letter to your attny asking if you wish to keep the car. I believe they send you a copy as I received one as well. Not only did my attny reply back, but so did I. The folks at Toyota seemed nice and if they know they are getting the payments ontime, I think they care less. But, I would speculate you miss 1 or 2 pymts they will act quick.