2 Questions about Chapter 13 filed bankruptcy

[srjjames]

I filed chapter 13 on 1/24/2012. My car payment was not included. I was suppose to make payments directly to capital one. My question is...I'm late on the payment. I had some unforseen medical problems in February. I'm three months behind. Can I add the bankruptcy to my plan? Also, a motion to lift a stay was granted and my dad was a cosigner. He is now deceased what does this mean? This was on a leased vehicle that I had, but turned in.

[despritfreya]

I see no reason why you could not contact the lessor and ask to enter into a catch up arrangement over a period of, say 6 months. The lessor might want you to stipulate to the lifting of the stay if you fall behind again - something you would have to think about before agreeing to.

A “6 month cure with a 15 day drop dead” provision is typical. This means that if you fail to make a payment the lessor/lender sends you a “notice of default”. If you fail to “cure” the default within 15 days of the date of the notice the stay is lifted and the lessor/lender is free to take the property. We use such stipulations routinely with mortgage payments and leased vehicles.

As to the other issue. Sorry for your loss.

The lifting of the co-debtor stay generally means the creditor is now free to collect from the co-signer. In your situation, however, with the passing of your father (the co-signer) the lifting of the co-debtor stay has no impact but for any probate issues that may arise in settling his estate and providing for payment of his debt.

Des.

[srjjames]

Thanks for reply.

I'm kind of confused though Do I contact CapitalOne or can my attorney do this? I want to make sure I ask for the right thing. So it's called a catch up arrangement or 6 month cure?

[despritfreya]

The creditor may not want to negotiate directly with you if you have an attny. Ask your attny which would be the better way to proceed. Sometimes, depending upon the creditor, I will have my client try 1st.

Edt: You can call it whichever you like. All you are trying to do is catch up the post petition payments.

Des.

OH BOY. . . I SEE THAT THIS WAS MY 2000TH POST!!!

[srjjames]

Thanks for replying and answering my questions. I'm email my attorney now. Are you an attorney?

[keepsmiling]

Just answering in case des is taking some time off for the weekend....
YES, Des is a bk attorney. Wish he could be mine I think we all do.

[despritfreya]

Just answering in case des is taking some time off for the weekend....

Thanks for the assist.

Des.

[justbroke]

Des never takes time off! Always working hard for debtors!

[pamkev]

Just answering in case des is taking some time off for the weekend....
YES, Des is a bk attorney. Wish he could be mine I think we all do.

.0qa

I agree

[srjjames]

I spoke with the secretary for my attorney, she said that Capital One will not agree to put the arrers in the plan. Does anyone else know something that can be done. I don't want them to take my car.

[justbroke]

I spoke with the secretary for my attorney, she said that Capital One will not agree to put the arrers in the plan. Does anyone else know something that can be done. I don't want them to take my car.

Unless Des comes up with something, I don't think there is anything else. Putting the arrears in the plan puts the creditor at a disadvantage if you still don't pay; that's because the car will depreciate more and they could lose even more money.

You COULD try to see if USBank (the people who do Chapter 7 "722" Redemption loans) would refinance the car in your active 13. However, with a history of non-payment, it may be a non-starter.

[despritfreya]

Unless Des comes up with something. . .

Unfortunately, and if I recall correctly, we are dealing with a lease. I have no words of wisdom other than "bring the payments current". I cannot think of any case I handled where the leasing company was not willing to enter into a catch up agreement but, for some reason Cap One is just not interested.

Des.

[srjjames]

Once again, thanks everyone for trying to help. No this is not a leased vehicle. I purchased the car. Does this change anything?

[despritfreya]

No this is not a leased vehicle. I purchased the car. Does this change anything?

My bad. You did have a lease but you turned that one in. Yes, IMO it does change things. The Code allows you to cure "any default" through the Plan. See 11 USC 1322(b)(3). In my jurisdiction, while modifying the Plan to add a post petition default is not liked, it is allowed. If the stay has not been lifted on the vehicle discuss this option with your attorney.

Des.

[srjjames]

Wow Des, I really wish you were my attorney!!! I"m going to email him this right now.