Do you still make car payments during CH 7?

[sydneynoel]

We are surrending one car and keeping one car. Do I keep making the monthly payments on the car that were keeping or do i stop all payments to everyone during the bankruptcy process? The payment is 253.54/month. Also, was wondering the same about my student loan that cannot be discharged. Should I continue making these payments once I file since I plan on keeping them?

[JollyGG]

Keep making the car payment for the car you want to keep.
Your account may be transfered to the bankruptcy department when you file so call and make sure you have the correct address to send payments to. Additionally, they may stop sending you statements so just make sure you get the full amount in on time with or without a statement if you want to keep the car.
As for the students loans. Those will probably be placed in adminstrative forberance during the four months from filing until discharge and you will resume paying them when you are discharged. However, call and make sure before skipping a payment.

[lrprn]

We are surrending one car and keeping one car. Do I keep making the monthly payments on the car that were keeping or do i stop all payments to everyone during the bankruptcy process? The payment is 253.54/month. Also, was wondering the same about my student loan that cannot be discharged. Should I continue making these payments once I file since I plan on keeping them?

Sydney, the answer depends on how your cars are being treated by your plan.

If you are supposed to make the car payment "outside the plan" yourselves, then you must continue making the payment yourself. Be certain to make it on time or your car lender could ask the court to lift the stay and repossess your car.

However, if your trustee is supposed to make your car payment "inside the plan", then you don't make the payment at all.

If you don't know which is the case for your plan, call your lawyer and ask.

[CindyLou]

sydney....In a chapter 7 you must continue to make payment if you intent to keep the car, but your attorney must also reaffirm this car in your bankruptcy. This is where you sign a promise with the lender to continue paying for the car in exchange for again becoming fully responsible for the debt again.

I think what lrprn was referring to regarding "inside and outside" the plan was in reference to a chapter 13 and you stated you are filing a chapter 7, so this would not apply to you. You need to keep making payments on your car no matter what if you are planning on keeping it..do not miss a payment!!! (please tell me if I am confused lrprn...I don't want to give wrong advice here)