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    #1

    Question on Default

    Does a bank need to give notice of default?


    Due to a long story and poor advice from my lawyer and trustee in my Chapter 7 case, I didn't make payment on a car and was 85 days behind on my loan. Once everything cleared up, I caught the loan back up and paid the $10 per month late fee. I never received anything from the lien holder stating I was in default. Now that issue (whether or not I was in default) is a legal question in a $2,000 dispute I have with them.
    Any help would be appreciated even if you just have a web site with any case law explaining what a company has to do if they feel you have defaulted in the contract.
    Tags: None
    #2
    Originally posted by WhatJust
    Does a bank need to give notice of default?

    Due to a long story and poor advice from my lawyer and trustee in my Chapter 7 case, I didn't make payment on a car and was 85 days behind on my loan. Once everything cleared up, I caught the loan back up and paid the $10 per month late fee. I never received anything from the lien holder stating I was in default. Now that issue (whether or not I was in default) is a legal question in a $2,000 dispute I have with them.
    Any help would be appreciated even if you just have a web site with any case law explaining what a company has to do if they feel you have defaulted in the contract.
    Is the $2K in question the remainder of your car loan or something else? Are you still in possession of the car?

    Here's a webpage about uniform commercial code around secured transactions - http://www.law.cornell.edu/ucc/9/overview.html . Looks like some lender responsibilities are discussed under the Default section at the bottom. Good luck - hope everything works out for you.
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !
    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

    Comment

      #3
      Did they not contact you because you were in the middle of your automatic stay?
      *** THIS IS NOT LEGAL ADVICE--ONLY A LAWYER CAN PROVIDE THAT. ***

      My posts represent hours of research on and off the web, these forums, my experience, and my opinions.

      Comment

        #4
        The $2K is in addition to my remaining loan which is $1600. I am still in possesion of the car. They never contacted me but sent me my quarterly statement at the regular time. I thought they at least had to contact me and say, "hey, we haven't received your payment". There is nothing from them stating that I went into default but to the letter of the contract, i.e. "pay on time" I would think that technically, I defaulted on the loan. I'm confused.

        WhatJust (ice)

        Comment

          #5
          Originally posted by WhatJust
          The $2K is in addition to my remaining loan which is $1600. I am still in possesion of the car. They never contacted me but sent me my quarterly statement at the regular time. I thought they at least had to contact me and say, "hey, we haven't received your payment". There is nothing from them stating that I went into default but to the letter of the contract, i.e. "pay on time" I would think that technically, I defaulted on the loan. I'm confused.

          WhatJust (ice)
          Sorry to hear you are still having fallout after filing Ch 7, WhatJust.

          The sad truth is that your lender is under no obligation to contact you regarding non-payment after you have filed bk. In fact, if they do contact you, they cannot send you a bill or mention money owed with a payment date because this would put them in violation of the automatic stay. Of course, often this can be an advantage to lenders and some use the situation to get more money from debtors who wiped the slate clean with bankruptcy.

          Since you filed Ch 7 with a lawyer who didn't protect you very well, I would contact another bk lawyer in your area for advice - most provide a free half-hour to hour consultation. Run your situation by 3-4 of them to see what they think and also to find out if you need a different kind of lawyer to protect your rights in this situation. Good luck - keep us posted on what happens.
          I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

          06/01/06 - Filed Ch 13
          06/28/06 - 341 Meeting
          07/18/06 - Confirmation Hearing - not confirmed, 3 objections
          10/05/06 - Hearing to resolve 2 trustee objections
          01/24/07 - Judge dismisses mortgage company objection
          09/27/07 - Confirmed at last!
          06/10/11 - Trustee confirms all payments made
          08/10/11 - DISCHARGED !
          10/02/11 - CASE CLOSED
          Countdown: 60 months paid, 0 months to go

          Comment

            #6
            don't like this thread, moderator please delete this thread.



            Please don't post here thread is going to be deleted. Mine was so this one should be too! Why, no reason, just want to see some one elses work get bumped out of here.

            Comment

              #7
              Originally posted by YRUSODUMB
              don't like this thread, moderator please delete this thread.



              Please don't post here thread is going to be deleted. Mine was so this one should be too! Why, no reason, just want to see some one elses work get bumped out of here.




              y rusodumb?
              When it all boils down to it, its just numbers! Your credit score, your interest rate, your bank account, and your net worth if you're fortunate enough to have one......is your happiness really defined by numbers?

              Comment

                #8
                In addition to lates, penalties, and other fees the lender may have added to your bill, the Lender may also have legal fees tacked in there too.

                Very often, Lenders hire legal counsel to defend their interests regarding BK, and then wind up tacking those fees onto the loan of the Debtor/Filer.

                So part of that $2K may be your Lender's legal fees too.
                Filed Ch 7 - 09/06
                Discharged - 12/2006
                Officially Declared No Asset - 03/2007
                Closed - 04/2007

                I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                Comment

                  #9
                  SF,

                  Correct. Legal fee's. But as I read the contract, I have to be in default. The more I ask the question, the more the answer is glaring me in the face. Because my attorney told me to quit paying while a lien was disputed by the Trustee, I end up committing default. Are there any honest lawyer out there anymore or is "honest lawyer" just an oxymoron.

                  Comment

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