Late car payment while on chapter 13, will this effect my chapter 13?

[chp13]

Ok so I'm might have to skip my monthly auto loan payment this month then double up next month (overtime check). The payment is not included on my chapter 13 plan obviously so my question is will this in any way effect my chapter 13? Since I filed chapter 13, Wellsfargo financial placed my auto loan in their chapter 13 department. Could they report this to my Trustee?

[kornellred]

The trustee will most likely find out about a skipped auto loan payment being handled outside of a Chapter 13 plan. You should probably inform the bank of your difficulty and ask them if they could forestall notifying the trustee pending receipt of your overdue payment. My own car payment is paid outside my Chapter 13 plan payment, and I receive no correspondence or acknowledgements of any sort from the lender. And so, it would be hard to say exactly how lenders handle their Chapter 13 bankruptcy accounts, but they probably all do it the same way.

[lrprn]

Your real problem isn't with your trustee - it's with your auto loan lender. A few aggressive lenders will petition the court to lift the automatic stay to repossess a car after just one late payment. It all depends on the lender and the current market value of your car. Most will allow you to get up to 2 months late before doing anything, but there's no guarantee of that.

Discuss this situation with your lawyer to see if he/she has an idea about what to expect your car lender to do if you miss a payment.

[diychapter7]

What court did you file your case in? There are a handful of courts in the country that require you to start putting secured payments into the plan if you become delinquent (at least this is true with regard to mortgages). Ask your lawyer whether your court requires this. It's called a "conduit" payment.

[justbroke]

If you are going to do this, don't go 30-days late! Make sure you keep payments consistent and on-time. The lender/creditor can complain and get relief, but if this is your first time and you're usually on time, you should be okay.

I would still review this with my attorney. The real problem is... what's the problem? If you're having money trouble already, then there is something wrong. Perhaps you should discuss the money issues with your attorney to see if something should change. How long have you been in this Chapter 13?

[newbie2]

You've only been confirmed a month or two correct? If that's the case you really need to sit down and figure out how you're going to get through the next years in the plan. The auto lender may very well file for relief from stay quickly because you are so new to the plan. Do what you can to not be late, and re-think how your plan is working so that you can continue to make those secure debts on time.

[IamOld]

For what it's worth, I pay Ascenscion Capital for Cap One - I cannot pay them early so I have to time my check to them - which I can with USPS Priority Mail to get there on the due date - when I get paid. SO - anyway, I've noticed that Ascension always stamps the check "received" it a day later after Post Office shows delivery...so far no issues - when due date was on a Sat, they "received" it 2 days later on Monday...so I don't think a few days matter...BUT I would talk to the atty if I had to be that late....

However, if the car is way upside down...I think they'd rather have the $$ than the car.

[justbroke]

Ascension Capital seems to be the "bankruptcy collection" du jour for many automobile lenders.

[Flamingo]

Ok so I'm might have to skip my monthly auto loan payment this month then double up next month (overtime check). The payment is not included on my chapter 13 plan obviously so my question is will this in any way effect my chapter 13? Since I filed chapter 13, Wellsfargo financial placed my auto loan in their chapter 13 department. Could they report this to my Trustee?

The worst thing you can do during your Chapter 13 is not to make a payment of any kind and not to make your Chapter 13 payments. If you find yourself in a rough spot and cannot make a car payment, utility bill, etc., immediately contact your attorney to go over the situation. Your auto loan is part of your Chapter 13 even though you make the payments outside of your Plan. Not making those payments without Trustee permission lines you up for a possible dismissal of your Plan. Call your attorney right away and go over everything with him/her.