How will the debt be classified?

[Granny]

I'm just starting my research for a Ch 7 after being in a Ch 13 for over 2 years. After my Ch 13 is dismissed for non-payment, I will be filing a joint Ch 7. We will be below the median income and will pass the means test.

We have a creditor that was secured when I filed my 13, but we have given back the vehicle that secured this claim. I assume the vehicle has been sold and there is a large balance remaining, however, it is possible that it is still sitting on a lot somewhere. The creditor has been aggressive during my 13 so I expect there to be problems with them in a Chapter 7.

I know they contacted my attorney in Dec 08, two years after I filed and they wanted to change how it was being treated, which is now unsecured. The Ch 13 trustee allowed it to be considered unsecured and they are currently getting most of my monthly payment due to the fact that they are now my largest unsecured creditor. This is a change from how it was being treated just 4 months ago. Could they fight us listing them as an unsecured? Could this some how muck up a Ch 7?

BTW, I can't address the questions to my attorney because I will not be using the same attorney when I file my Ch 7. In fact, I won't even be filing in the same district.

Thanks

[AngelinaCatHub]

No matter how that creditor wishes to state this, you gave the security back to them. If you wish to trace your car, find the VIN and go online to that car check site (I forgot its name at the moment)(the moments are getting often). If they auctioned the car, you should have gotten a letter stating the sale price and the deficiency. When it was picked up or surrendered did you get a receipt? I would be sure to have your C7 ready the same day you get dismissed as this creditor will get a letter from the matrix. File right away to have them froze out in the automatic stay. 'Hub

[Granny]

It's not a car, it was an 18 wheeler but I think the rest of your advice is the same. I really should call them and inquire as to the status but I hate talking to that woman.

I really think they were ticked because hubby "refinanced" it about 45 days before I filed and we never made a payment on the "refinance" before I filed. He refinanced it because it needed a new transmission to the tune of $7k. We had no idea we were going to file when he did that. If I had known, we might have done something differently. If I knew then what I know now, I definitely would have handled this differently. But they don't get that I didn't file to screw them, I filed to save my house, they were just a casualty of war and my ignorance (and whacky hormones helping me make bad decisions).

Thanks for your help.

[AngelinaCatHub]

LOL on the hormones. No one really plans on bk. The "plan" comes after the realization that the business decision is to your advantage and that you have gone off the road for practical recovery, so don't feel badly. Those who "PLAN" to bk is usually a fraudulent person, not one who by accident or circumstances dive off the cliff of no recovery.

Did you get the letter I asked about? Receipt for the Truck? 'Hub

[HHM]

If you returned the collateral to the lender, that lender would only have an unsecured claim against you.

[Granny]

LOL on the hormones. No one really plans on bk. The "plan" comes after the realization that the business decision is to your advantage and that you have gone off the road for practical recovery, so don't feel badly. Those who "PLAN" to bk is usually a fraudulent person, not one who by accident or circumstances dive off the cliff of no recovery.

Did you get the letter I asked about? Receipt for the Truck? 'Hub

You know what I meant about the planning, researching would have been a better choice of words. The place to start was to research attorneys.

Anyway, I'm not sure about the receipt, that was so long ago. I do recall getting a letter from the finance company that said we could request details of the sale if and when it occurs, but I haven't followed up on it yet. Guess I better do that so I'll know how much to list for the Ch 7. However, I do have copies of all the various filings they made with the Ch 13 that shows they got it back. snicker snicker