reporting to credit bureau during BK

[itcaughtup]

Do companies such as mortgage or car leasing companies report to the credit bureaus if you make a late payements during your bk or are they not allowed to do that?

[lrprn]

Do companies such as mortgage or car leasing companies report to the credit bureaus if you make a late payements during your bk or are they not allowed to do that?

You have a lot more to worry about if you make late or partial payments for an asset during bk than what's happening on your credit report.

If you make partial or late payments for an asset during an active bk you can lose the asset because you open the door wide to the lender legally repossessing your asset (home, car, etc). All the lender has to do is petition the court to release your automatic stay so they can start the legal process to repossess your asset.

[Phillymanhere]

Irprn,

Let me make sure I follow you: the poster doesn't have to make any payments during this time because all creditors are required to obey an automatic stay during this period? Is that right?

[debtrelief08]

Irprn,

Let me make sure I follow you: the poster doesn't have to make any payments during this time because all creditors are required to obey an automatic stay during this period? Is that right?

definately not a guru but i think that it depends on the state that you live in some states say that a car can not be repo'd if you are current on your payments regardless if you are in bk, so to answer your question if a person does not pay their car payment while in bk the finacing agency can file a motion to temporary lift the automatic stay or a limited automatic stay (i may be saying it wrong) the court will approve the motion so they can repo the car if you miss a payment. if a person plans on keeping a car after bk i would think they better pay every payment on time (just me thoughts on the situation someone more knowledgable will probably chime in shortly)

[lrprn]

Let me make sure I follow you: the poster doesn't have to make any payments during this time because all creditors are required to obey an automatic stay during this period? Is that right?

No, that isn't right. The poster MUST make complete payments on time after filing to keep a secured asset.

If the payments for the secured asset are only partial, are paid after the grace period, or are skipped entirely, the lender can request the court lift the automatic stay to start repossession actions.

Doesn't mean the lender might not give the filer some leeway, but they have every right to request for the lift of stay after just one miss of any kind.

[itcaughtup]

Good to know, thanks for the info. i have been current all the way through, even before filing but last month I paid my mortgage on the 20th, even though it wasnt 30 days late i was curious if they could do anything. So te automatic stay against collecting funds only applies to unsecured debt?