Help, we got a letter about our Car loan. And I have an attorney question.

[LA81]

We filed Chapter 13 in April 2009, for 60 months. Our car was put in the bankruptcy as secured so we got to keep our car and our bankruptcy note every month pays the car note. We've never been late on our bankruptcy payment or anything like that.

We got a letter in the mail yesterday from the bank on the loan saying our loan has matured. It shows the due date as Nov. 15, 2009 and a past due amount of almost what we bought the car for in 2008. Obviously we are going to be calling the bank tomorrow and seeing what's going on. But I'm just wondering if this is something normal? I'm really hoping it was just a fluke at the bank. I'm thinking if they had not been getting their part they would have let us know a long time ago.

Now to the attorney problem. Our bankruptcy attorney that we've used from the beginning, passed away a few months ago. We got a letter from the trustee with a list of attorneys in our area but we haven't ever contacted anyone because we really didn't think we needed to since we were already set and have been making payments for two years. Now that this has come up, I'm thinking we probably need to get a new lawyer ASAP.

I am so scared we are going to end up having to pay a lot more money to get a new attorney even though we have already put out money to the other lawyer. Is there something that protects people when something like this happens? According to our papers, he still gets paid every month.

Has anyone had to deal with this before? We plan on making an appointment with another attorney this week and talking to the bank but I'm just nervous about what COULD be happening. Any advice will be truly appreciated.

[AngelinaCatHub]

OK, settle down, take a breath and think this: Pretend at this time, pro se. Address the Trustee you are dealing with and ASK HIM this question. He is an attorney and as pro se you can talk to him directly. See what he says, so if the bank has done wrong or misinformed, it affects his disbursements. Consider it helping him do his job as well. In the end, the Court still has to address the disbursements and agree to give you a discharge.

Also, purchase the C13 book from Nolo press online. It is about 25 30 bucks download pdf. Perhaps you actually can go pro se with a bit of knowledge and save yourself some bucks. 'Hub

[lrprn]

Start by trying to find a new bk attorney as quickly as possible. Your Ch 13 trustee is there to represent your creditors, not to represent you.

If your former attorney was a member of a law group, one of the members will likely take over your case at no charge. If your attorney was working solo, then explain what happened to your first attorney when you interview new ones. It's possible that another local lawyer may reduce their fee under the circumstances.

There is a risk if you contact this creditor directly and by accident say the wrong thing. Best to handle this with an attorney if possible. If you can't find an attorney quickly, then you may have to handle contacting the trustee yourself. Just keep to the facts and remember that your trustee is not your attorney.

[despritfreya]

The letter you got is probably a form letter based upon the original contract terms. Since sending the letter would be a violation of the automatic stay (assuming the stay has not been lifted) check the letter again to see if there is anything in it referring to the bk and that the letter is for informational purposes only.

Regardless of what the letter states, if 1) the stay has not been lifted; 2) the creditor is provided for in your Plan; 3) your Plan is confirmed; 4) you are current in your Plan payments and: 5) you have proper insurance on the vehicle. . . don't worry about it. The lender is not going to violate your bk rights. Remember, your confirmed Plan created a "new contract" therefore, the terms of the old one are not relevant so long as you complete the Plan and obtain your 13 Discharge.

Des.