Dismissing chapter 13 what will Toyota do?

[Caaa211]

I filed BK back in 2018. At the time I owed Toyota Fiancial 25,XXX. Per my lawyer I was told that due to the vehicle being so new I would have to pay 100% of the agreement to Toyota. I also have a loan through Santander for a vehicle. Owed 18,XXX at filing date. Santander saying if I’m dismissed I will have to pay 11,XXX just to keep that vehicle. Now Toyota told me my pay off is 16K. But can not tell me what will happen after dismissal. If I’m dismissed rather voluntarily or if the trustee dismissed me what happens to my Toyota account? It still says open but the BK dpt says they can not guarantee what will happen after dismissal. Has anyone ever been dismissed and had the original contract reinstated? Or am I going to have to wait till they issue an order of repossession and pay them the 16K? My papers show they get the exact payment amount I paid per month before filing.

[justbroke]

If your TFS (Toyota Financial Services) loan is current and was not modified by the bankruptcy, and you continued to pay on time, then the loan would be current even if your case was dismissed. The reason their bankruptcy department can't tell you what will happen because they don't know the status of your account. If you're not paying the Trustee then that means you're not paying Toyota (if you pay through the Trustee). That could be problematic with a dismissal since you would be behind in payments.

So long as you haven't missed any payments to the Trustee -- including up to dismissal -- it shouldn't be an issue since you'd be current. The contract never went anywhere and there is nothing to reinstate. You are just put back into the place you were the day before you filed your Chapter 13. That means that any missed payments to date are going to be an issue.

For Santander, it reads as though their claim was bifurcated into a secured and unsecured claim and that you were only paying the secured part through the bankruptcy. This means that you would be behind in payments if the case were to dismiss.

Have you looked at conversion to Chapter 7?

[sophieanne]

Hi… Just double checking I understand that your payment wasn’t modified by the BK… But one question… is the interest rate the same rate per the original agreement or was it crammed down in BK? If your interest rate was adjusted Toyota financial will add the difference back onto your loan. They clearly explained that to me when I filed in 2012. Comment may not be relevant but a small thing to be aware of. Good luck as you go forward.