Couple questions regarding vehicle payments in CH 13, including registration loans...

[psa10]

A couple questions here, I am going to be keeping my vehicle, which currently has a lien on it anyways in my CH 13 case, question is this, I went down to my attorneys office today and paid the retainer fee so that I can refer all creditors to them now while I hurry and save the rest of the money so that I can hurry up and file. Should I be making payments on the vehicle while saving to pay the rest of my CH 13 case or can I just stop paying and pay the behind amount in the case?

Also I have three registration loans on the vehicle here in AZ, how long do you think I would have before one of these companies try and repo my car? I have a registration loan for $875, $900 and one for $575. I assume they have to give notice to repo the car? All loans are currently current however plan from here on out to stop paying.

Opinions please, thanks for all the help!!

[kornellred]

Yes - you definitely must continue to make payments on your vehicle, because unless you are eligible for a cramdown, you will be paying every cent of the secured loan, either in the Chapter 13 payment or separately.

[despritfreya]

You continue to pay until just before filing. If you will be filing within the next couple of weeks that's one thing. But if it is going to take longer to come up with the balance of the retainer you need to stay current. The lien holder(s) have the right to repo, without notice, the moment you fail to make a timely payment. Normally they don't react that quickly but it is too big of a risk.

If the vehicle is repoed before filing but has not been disposed of by the lender as of when you file, so long as you maintain full insurance you can get it back. The problem is that letting this happen is more work for the lawyer and more fees for you.

Des.

[BNKRPTinNC]

You continue to pay until just before filing. If you will be filing within the next couple of weeks that's one thing. But if it is going to take longer to come up with the balance of the retainer you need to stay current. The lien holder(s) have the right to repo, without notice, the moment you fail to make a timely payment. Normally they don't react that quickly but it is too big of a risk.
Des.

+1

We got behind and went back and forth with finance company trying to catch up. Needless to say a tow truck showed up at the house looking for the car. As we had retained an atty. and filed we had yet to receive a case number. The car was not there at the time so made a quick call to the atty. and was told to park it in the garage until we had a case number and then there wouldn't be any issues. Worked for us. Fortunately we had a second car.

[psa10]

Thanks for the info, I just don't know what I'm going to do with the three title/registration loans that I have, I'm not sure if I should pay or just refer to my attorney to deal with.... I'm just so broke that I wish the attorney would let me file now and make payments, the worst thing that could happen right now would for me to lose my car.

[Pjmax]

If you are paying on credit cards now, stop and use that money to keep your car current and make attorney payments. If you really need that car, everything else can wait. Depending on the company, they can and do repo if you miss a payment, although many of the more reputable companies will wait until 60 or 90 days late. No, they don't give you notice. You can leave work one day, and find your car missing.

How long will it take to save the money for your BK attorney?

[psa10]

I'm thinking it will take me about 45 days to pay my bk in full, I have an appt at the end of this month when I will go over all my required paperwork with my attorney, I will pay him more money at that time for the case and am going to ask him if he could just file now and see if I could make payments to him for the rest of the case....... We will see what happens

[kmjatl]

I'm not sure how it is in your state, but the bulk of my legal fees were included in my chapter 13 plan. And they were paid first. Check with your attorney.

And keep current on the title loans. Title loan companies have a reputation for being ruthless collectors.

[AngelinaCat]

Perhaps I am dense, but what is meant by the term, 'title loan'?

If it means what I think it does, I want to know how you can possibly hawk one car title to three different loan companies?

We had a 5K loan from American General Finance and we had to give the titles of not one, but TWO cars to secure that loan. Both cars were older models and not worth a whole lot. Both died during the term of the loan. Without going into a long story, we stopped paying on that loan and listed it in our BK paperwork.

American General did not try to sue us, but instead sent reaffirmation paperwork--already filled out, except for our signatures--to our trustee. Our trustee gave them to us at our 341, with the suggestion that we needed to discuss this matter with our attorney.

The first thing we did when we got home from the 341 was to run them through the paper shredder.

We had never ever dealt with a more unscrupulous bunch of people. As I said, there is a long story here. This agency is now known as Green Leaf Financial. Beware, one and all....

ETA: AGF is now Springleaf Financial. My error. Somehow I keep getting the G and S confused. However, to be on the safe side, be wary of both.

[psa10]

These are actually registration loans where you can get a loan without a clear title. I have four of them, not sure if I can get away without paying for at least a month or so. I am not sure if state law here in AZ requires notice if they plan on repossessiong ones vehicle. I would assume that there would be at least some sort of notice, letter, collection attempt prior to repo. Just got over my head big time here but am looking for a fresh start after a five year payment plan, at least my car loan will included in my plan.....

[psa10]

Oh I also have a loan from AGF, now called Spring Leaf Financial. I have a loan there for $3500 that I am no longer paying starting tonight..

[AngelinaCat]

These are actually registration loans where you can get a loan without a clear title.

This must be not allowed in Florida, or at least we haven't dealt with it. When we got our loan with AGF, the title to the one car which Kelly Blue Book said was worth 6K, was not good enough for them. We had to bring in a second title, to a car with engine replaced, that was only worth about 2K....

[catleg]

I don't understand why you'd need to pay upfront unless you feel a chapter 7 is a real possibility , or perhaps that a chapter 13 is not feasible and the lawyer is hedging his bets.
As someone else noted, the lawyers fees get paid from the chapter 13 pot and he gets paid first ( I forget whether maybe the IRS gets paid first but I don't think so).
You need to keep up payments on the car or else it will be repo'ed, whether or not you file for BK. In BK it takes a little longer but it would still happen.
One of the key strategic decisions you make when starting a chapter 13 is having a vehicle that will survive the length of the plan.
If your current vehicle is old it may be to your benefit to get a new (used) car with financing arranged for a term equal to or longer than the chapter 13 plan length.
IF the interest rate is outrageous, don't panic, have the trustee pay it inside the plan and they will usually adjust it down to a lower rate closer to 6%. (till rate)
Then of course you would let the lenders take back your old car.

[LadyInTheRed]

I don't understand why you'd need to pay upfront unless you feel a chapter 7 is a real possibility , or perhaps that a chapter 13 is not feasible and the lawyer is hedging his bets.
As someone else noted, the lawyers fees get paid from the chapter 13 pot and he gets paid first ( I forget whether maybe the IRS gets paid first but I don't think so).

I believe you are correct that attorney fees get paid before the IRS. While most attorneys agree to allow fees to be paid in the plan, not all do. Some local rules give them no choice by limiting how much they can receive ouside the plan.

[kmjatl]

I believe you are correct that attorney fees get paid before the IRS. While most attorneys agree to allow fees to be paid in the plan, not all do. Some local rules give them no choice by limiting how much they can receive ouside the plan.

My plan payments started as just attorney and car loan. Then just car loan. Then IRS and state taxes. Then unsecured.