Need major help, what have we done?

[turnedleaf]

To be short: We chose not to surrender our cars in the Ch7 because we needed the monthly payments in our bills to be able to qualify. Our lawyer (who really isn't a rat, he is actually one of the best in DC) said that after the BK was discharged, we could call and say we had changed our mind and surrender them. He said people did it all the time and it was no big deal.

We didnt sign any paperwork saying we were keeping the vehicles, for the record. We discharged last week. I checked out credit report and one of our car creditors has reported to our credit report that it was IIB. The other has not, and is still showing the acct is open and in good standing. I called and they said they had no record of us filing, ever.

Today the lady from the BK dept of our creditor called and said that the car was NOT included in the BK and we had no choice but to pay it. She said that since we didnt include it in the BK that we were out of luck. And that if we stopped paying, it would be reported as late payments and a repossession when they finally came for it.

What? Is she wrong? Is my lawyer wrong? Have we majorly screwed up here? Now we have an open account on our CR saying we pay $548 a month. We dont want either of these cars anymore, they are worth about $25,000 and we owe $43,000 on them collectively. The other creditor is no issue, they reported it is IIB and are going to pick it up next week.

[MomIcantFindmy]

Get a copy of your mailing creditor matrix and it will show what creditors were notified of your filing. If they were notified then send a copy of the matrix to the credit reporting bureau and dispute it. Then call the creditor and tell them come pick up the car.

If they were not notified then you would have to reopen your BK in order to have them put into the BK.

[liz417]

Gosh, I'm sure someone with more experience will come along soon.
But in my opinion, I thought it HAD to be included in the ch 7 in order for you not to be responsible for the deficient balance when the creditor sells the vehicle. How could one car be included and not the other? I would call your attorney ASAP and get this cleared up!!!

Good Luck!

[MomIcantFindmy]

Also if you were not an asset case that can make a difference....call the attorney.

[JRScott]

Okay I'd get on Pacer and look at your account.

Look at the creditor matrix.

Make sure they are on it. Then call your lawyer and tell him what has happened. He should be able to clear it up. As the others said get a copy of your creditor matrix and send to the credit bureaus and dispute it.

If it was not listed for some reason then you'll need to reopen the case and list it (Though if you were a no asset case there is a 6th District precedence that any debt even if not listed is considered discharged).

[CindyLou]

You're fine. You just need to get them a copy of your BK paperwork. I wouldn't lose sleep over this. They don't have a choice but to comply.

[turnedleaf]

They are most definitely on the creditor matrix and they acknowledge that they had a letter sent to them but they "didnt receive it".

My bigger question was: Did we reaffirm? Doesnt reaffirmation require some signing? We did NOTHING. We didnt sign ANYTHING relating to the vehicles, we just included the payments in our expense column. Could I possibly live in one of those very few districts that still does 'ride throughs'?

Our plan (and what the lawyer advised) after what we were told to do, was to keep paying til we wanted to turn them back in, then just stop paying and call them and tell them we dont want them anymore, they will come get them and all is dandy in the world. We don't WANT to turn our van in for 6 months or so, we are current on payments etc. The lady at the CU said that because we didnt "include it in the bankruptcy" (whatever she meant by that, but I assume because we listed the payment on our expenses) that was not an option for us.

And now we are on the other side of the country (which they gave us permission to do, we are military and had orders) with a van from a VERY local credit union (one branch, in one tiny town of one tiny southern state) that they are saying we are stuck with. Ugh.

*ETA: We are actually educated people, despite how stupid this post makes us sound. lol. I am beginning to wonder if we just just seriously screwed over by our lawyer....

[HHM]

CindyLou is right.

After all, consider the source...the person from the "lender" told you that you had to pay.

You are fine.

[turnedleaf]

Oh, and we were no-asset. In northern Virginia, in case that makes any gosh darn difference at all.

[turnedleaf]

CindyLou is right.

After all, consider the source...the person from the "lender" told you that you had to pay.

You are fine.

Thanks. I am trying not to sound frantic here. She was a very mean lady and I was nervous. Now I feel more confident.

[arkienurse]

My understanding is if you didn't sign papers, that means you are doing a "ride through". Where the hope is that as long as you remain current on your payments, they will allow you to keep the vehicle.

Credit unions are notorious for trying to screw bk people over. Just do a search through the forum for credit unions and auto payments. I vividly remember one person who included her van in a ch 13, upon completion of the plan, CU was refusing to give her the title, and even repo'd the van that had been paid for in the bk, all the time telling her that they had every right to do it.

I believe if you talk to your lawyer, you will find out you are ok. Truly, if they are listed on the creditor matrix, you are ok. It isn't your fault that they lost the letter notifying them of the bk.

Please do let us know what your lawyers says.

...........
Well, I see while I was posting, someone even more knowledgable was posting also. See, I knew you were OK

[soleprop]

i'm sitting here snickering because the mean lady at the CU will not get what she thought she would out of her rudeness with you. follow up with the paperwork and dangle the keys sweetly for her - hell i'd even but a sickeningly sweet 'thank you' card in the vehicle addressed to her lol - 'thanks for everything you were such a joy to work with.' wish you could see her face but it appears you're far far away now..

kidding but yeah. i hate it when they get snippy. good luck, keep us posted!