Car Debt that was erased in BK got totalled. Now what?

[LadyInTheRed]

I'm not missing the point, I'm asking a question, Mal. I want to know what exactly they are owed when the debt in the BK was discharged. I have continued to make payments. I called them Friday to find out the payoff figure, with 14 payments to go, and they quoted me double the amount as if I were to continue to make payments, claiming it was "interest". Who's defrauding who? If you don't have the answer, it's okay. I'm waiting for my attorney to answer, as the bank is already trying to defraud me on a debt, while discharged and I didn't reaffirm, I am paying anyway.

To satisfy their lien, they can demand whatever they are due under the contract, including interest and any penalties. If there is any insurance money left after paying that amount off, you can keep the rest. If you think they are calculating the payoff incorrectly, ask them to put their calculation in writing. Your first post said you had 22 payments to go at the time of the accident. Was the accident 8 months ago? Are you still making payments? Unless the car is worth more than you owe, you should stop making payments.

[ValleYum]

Also, you could ask your insurance company about a collateral substitution rather than an insurance payoff... just tossing my thought out there!

Good luck!

[malf1204]

To satisfy their lien, they can demand whatever they are due under the contract, including interest and any penalties. If there is any insurance money left after paying that amount off, you can keep the rest. If you think they are calculating the payoff incorrectly, ask them to put their calculation in writing. Your first post said you had 22 payments to go at the time of the accident. Was the accident 8 months ago? Are you still making payments? Unless the car is worth more than you owe, you should stop making payments.

Im going through this with my lender. I did not reaffirm and never missed a payment but they are trying to add more than $1000 to the note claiming fees for the DENIED reaffirmation agreement. I have made them an offer in writing. Send me a waiver of those fees in writing or I will stop making payments and you can spend more than $1000 to repo and sell my car at auction. I am at 0 equity but no negative equity with 2.5 years to go. It is certainly refreshing to be in the power position so to speak. No downside for me. Worst case scenario the repo and I go out and buy a new car the next day.

[BrokeinMD]

Ok, I heard from my attorney. Since I received a Chim Order (meaning I attempted to re-affirm, but the Court decided against it), I am not personally responsible for the balance of the debt that was discharged. My insurance will pay them the balance owed, and I should get everything (if anything) above that. I will have that conversation with the insurer next when I negotiation the payoff figure. Thanks all, for your input.

[BrokeinMD]

Oh, my attorney also said that if they try to charge anything beyond what the actual loan agreement stated, I could have recourse against them for that, as that is part of the discharge.

[doni49]

Yes. The debt was discharged. But they still had a legal interest in the car (close to having part OWNERSHIP in the car). Therefore they get at least part of the check.

The only thing I'd question is how much of the check. During the BK, you were permitted to exempt at least a portion of the value of that car. Does that exemption carry forward to allow you to keep that amount from the settlement and the lender gets the remainder?

EDIT: I didn't realize there was a second page here. It looks like you've gotten more info from your lawyer.