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

[technoreid1]

I am in bankruptcy....

Just tried to pay my car payment and my online account is cancelled!!! Says to call toyota???


What is going on? (sorry if I sound annoyed) Should I call toyota?

Thanks, techno

[kmb]

I'm in Chp 13 so a little different scenario, but when we filed, all of our online accounts were cancelled--two car payments, student loans and our mortgage. We now have to write checks for everything--they won't even send out payment booklets because that is considered trying to collect on a debt. I would call Toyota, but I bet they'll just tell you that you have to start manually making payments to them.

[FreshLikeADaisy]

KMB is right; it's pretty common to have your online accts disabled during a bk. Toyota may or may not reopen online access for you, but it's worth a shot. If you want to keep the car you'll have to pay them, so it's definitely worth looking into if you intend to reaffirm. Good luck!!!

[technoreid1]

Thanks! Just called Toyota and they told me just what you said - online access has been cancelled due to our BK......

I told them I want to keep the car and they said no problem....just mail my payment in....and also that they would send a re-affirmation agreement out to my BK attorney for us to sign and then for the agreement to go back to toyota.... and they said it has to be back to them before discharge....

They acted as if this is no big deal, very calm....

and they assured me that they would not come collect the car since I am paid up and have great payment history....
(this played on my fear of getting the car repo'd)

They also said some loan companies REPO the car when a debtor goes bankrupt????

CAN THEY REPO THE CAR LEGALLY WHILE ONE IS IN BK?

I guess I got a little worried with some of their statements....

thanks, techno

KMB is right; it's pretty common to have your online accts disabled during a bk. Toyota may or may not reopen online access for you, but it's worth a shot. If you want to keep the car you'll have to pay them, so it's definitely worth looking into if you intend to reaffirm. Good luck!!!

[PaKettle]

Yeah, as soon as I filed I could no longer make my payment online. In fact they quit sending me bills in the mail too, so I had to find an old bill, copy that and send that out each month with my payment.

Before reaffirming, please talk to your attorney if you have one.
And see this thread:

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

[FreshLikeADaisy]

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!!!

[PaKettle]

Thanks! Just called Toyota and they told me just what you said - online access has been cancelled due to our BK......

I told them I want to keep the car and they said no problem....just mail my payment in....and also that they would send a re-affirmation agreement out to my BK attorney for us to sign and then for the agreement to go back to toyota.... and they said it has to be back to them before discharge....

They acted as if this is no big deal, very calm....

and they assured me that they would not come collect the car since I am paid up and have great payment history....
(this played on my fear of getting the car repo'd)

They also said some loan companies REPO the car when a debtor goes bankrupt????

CAN THEY REPO THE CAR LEGALLY WHILE ONE IS IN BK?

I guess I got a little worried with some of their statements....

thanks, techno

Then CAN repo the car, and this is why I was going to reaffirm my (one year old 2007 car) loan. However my attorney said it is extremely rare for them to do it - in fact he said out of all the attorneys he knows no one has heard of their clients' cars being repo'd if they keep up the payments.

If this is going to cause you a lot of stress, you could reaffirm. But everyone told me not to do it and so I decided not to. I am not stressed about it because I believe the people who have all told me the chances of them repo'ing are almost zero as long as I pay on time. I'm going to be setting up an automatic payment through my bank.

[technoreid1]

Thanks for the positive words....I do appreciate it!

So can a car lender "legally" repo a car while a debtor is in bankruptcy even though he or she is on time with car payments?

Does my BK "stop" or "cancel" my original finance agreement (thus the need to re-affirm with the lender)?

* I was just 100% honest with them and upfront (even gave them my new physical address as we are losing our house in foreclosure and had to move) and everything seemed fine.

I guess I am over-reacting to all of this and just am trying to find out the law. (i.e, can a car lender "legally" repo a car while a debtor is in bankruptcy even though he or she is on time with car payments?)

thanks for understanding,

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]

I think I will feel more comfortable to reaffirm.... I do not want any chance of them taking my car as my wife does not drive and it is 100% essential for for me to drive her to work.

How would they get the car from you anyway if it's parked in your garage?

thanks, techno

Then CAN repo the car, and this is why I was going to reaffirm my (one year old 2007 car) loan. However my attorney said it is extremely rare for them to do it - in fact he said out of all the attorneys he knows no one has heard of their clients' cars being repo'd if they keep up the payments.

If this is going to cause you a lot of stress, you could reaffirm. But everyone told me not to do it and so I decided not to. I am not stressed about it because I believe the people who have all told me the chances of them repo'ing are almost zero as long as I pay on time. I'm going to be setting up an automatic payment through my bank.

[chpxiii]

I think I will feel more comfortable to reaffirm.... I do not want any chance of them taking my car as my wife does not drive and it is 100% essential for for me to drive her to work.

How would they get the car from you anyway if it's parked in your garage?

thanks, techno

The reason why it is suggested that you do not reaffirm is because that debt is dischargeable throught this bankruptcy.

The banks don't want your car. It's more hassle to set up repo and reselling. If you make your car payments they're likely to just let you keep your car since you're being "easy."

One of the things about bankruptcy is that you are discharged from *all* of your debts (except those exempted by law and what the bankruptcy judge says it exempt.)

Lenders want you to reaffirm your loans so you can still be responsible for the loan, even after discharge. People are usually advised not to reaffirm because of this. The question I see is, "What if something happens and you can no longer make payments?" If you have reaffirmed your loan you are still responsible for the debt and the lender can come after you. If you did *NOT* reaffirm your debt, you can walk away from the debt and the loan since it is included in this bankruptcy and will not be responsible for the loan, nor can the lender come after you for it. (caveat: I have read that you can "walk away from" the debt, but I don't know the exact details as to how you would "walk away from" it, tho'. I never did that.)

Generally speaking, even if you don't reaffirm the loan but continue to make car payments they are not likely to repo your car. It's more hassle and expense for them.

Seriously consider whether you want to reaffirm this loan before you get paranoid and want to "play it safe." The "safety" in reaffirming the loan is for the lender, not necessarily for you. I don't think you have to reaffirm the loan to keep the car. Talk to your lawyer about it.

And like FLAD said, Toyota is a HUGE lender, they deal with this all the time and would much rather you keep the car and make payments.

Oh, and one way they can repo your car, even if it is in the garage is you gotta take it out some day, especially when you drive it, right? If they know your place of employment, they may just take it from there.

[jdmc1973]

I can still see my loan account online, I just can't get into the details of the account. To make my payments I just make a transfer from my checking to my loan account each month. I've never had a problem with it, and I still get my loan balance on my monthly bank statement.

[getouttathehole]

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!

[diviaruba]

So can a car lender "legally" repo a car while a debtor is in bankruptcy even though he or she is on time with car payments?

Does my BK "stop" or "cancel" my original finance agreement (thus the need to re-affirm with the lender)?

* I was just 100% honest with them and upfront (even gave them my new physical address as we are losing our house in foreclosure and had to move) and everything seemed fine.

I guess I am over-reacting to all of this and just am trying to find out the law. (i.e, can a car lender "legally" repo a car while a debtor is in bankruptcy even though he or she is on time with car payments?)

thanks for understanding,

techno

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

[chpxiii]

diviaruba, wow. tThat's REALLY good to know. Maybe the OP should, then, reaffirm.

I guess creditors got tired of letting people "ride through" only to have them turn around and "walk away" leaving the creditor with well used piece of property that couldn't be sold for what is owed.

[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.