What is considered a "late payment"?

[Leesa926]

I have a car I would like to keep (1.75% interest - 3 years left). Still confused about the reaffirming (I will discuss with my lawyer). It is with a credit union and my payments are on time. I do have a signature loan that I am IIB with the same creditor but the lawyer says I will be able to keep the car.

My question is do I have to worry that even being 1 day late they can repossess or not agree to let me keep the car? I make my payments on time but sometimes within the 9 day grace period due to when my paycheck comes in. i.e. it is due the 26th but I get paid on the 30th. I feel I should be ok but wanted to make sure. I know before bankruptcy they wouldn't repo that early but not sure once I file or if when I file it shows I was less than a week late that would cause a problem.

Just want to make sure. I am struggling with catching up on bills this month and planning to file soon (just submitted all to the attorney). Now that I am not paying creditors I will be ok it is just tight the next month. I am working on extensions with any utility payments I have as I do not want to include them due to the possibility of a deposit. My car insurance renewal is up so that is also making me pay an extra payment this month.

Thanks just trying to make sure I don't screw anything up before filing!

[justbroke]

You and your attorney will need to have any cross-collateralization removed (between your personal loan and the vehicle). Other than that, I don't think there is any real issue with being within the grace period, but that's my personal opinion. I have never read about a car being repossessed for a payment that is 1-5 days late.

I have a suggestion. Have you asked your CU to move your payment date? I have had my vehicle payments date to align with my semi-monthly pay (moving car payments to the middle of the month, rather than the beginning when I need to pay the mortgage). Some CUs may not allow you to move your payment date because they do things such as have all installments loans due on the same date.

[Leesa926]

I plan to do that with some of my bills once I finish the bankruptcy. Most I can get an extension on but starting the new year I want to look over my budget and figure out where my dates should like or how to pay. I had a loss of income (hence what got me here) I am doing better but adjusting to my new job pay. I get 1 big check a month and then a smaller one bi weekly so getting used to it vs the semi monthly.

Thanks!