Late payments during 'ride-through'

[midnight]

What happens during late payments on a ride through during a chapter 7? I am 2 months behind on a van with Wachovia. Hope to catch up within the next 2 weeks. We're in the middle of our automatic stay. Can they still come and claim the car? Or do they have to file something beforehand? I'm nervous thinking they will come get the car. I plan on calling them later to explain but wanted to see what they can do first.

[LimpDisc]

They would need to file a motion for relief of automatic stay.

[okiebk09]

They have to file for relief from stay with the court, a judge has to grant this and file with the court. Then they have to hire someone to come get it from you. If they can find it. ;o)

[aces67]

They can't just come get it they will have to file for relief of stay first. Once your BK is discharged though you need to stay current.

You need to look at why you are behind and see if you really can afford to keep it or not.

[jribe]

make sure the loan is current before your discharge- otherwise they may be waiting for it on day 61.

[djinaz]

I'm in the exact same situation. Have 2 auto loans, one through Wachovia for a van. We decided that we can't afford the payments for either vehicle. It looks like both financing companies have filed for the automatic stay to be lifted. I understand we are giving up these vehicles but really curious when they might come get them. My husband has a 2 hour commute to work (one way) and we have 3 children. I have no idea how we would manage with 1 car let alone no vehicle. Can someone please break down the process of how it works once the company has filed for the automatic stay to be lifted. We filed for Chapter 7 bankruptcy on December 23 and our 341 is scheduled for Feb. 17th.

[Chowder]

There have been several posts where cars were repo'd without the stay being lifted.
So that only keeps the honest guys honest.

How long you can hang onto a car depends on your states law, and how prepared you are to make it difficult for them to get to it.

[albacore44]

Another thing to remember here that your attorneys should have told you. If you are borderline Ch-7, and need those car payments to qualify for a Ch-7,if the UST see's your not keeping up with them, he will assume your intent is to turn in the car post BK, and dis-allow the car payment as an expense. be very careful.

[qsr]

I'm current on my vehicle payment and want to keep the car. Should I just try to a ride-through or reaffirm?

[Chowder]

Generally you want to ride through, if possible.

[debtsucks]

Another thing to remember here that your attorneys should have told you. If you are borderline Ch-7, and need those car payments to qualify for a Ch-7,if the UST see's your not keeping up with them, he will assume your intent is to turn in the car post BK, and dis-allow the car payment as an expense. be very careful.

OK so how does that work in my case. I am using my car payment as an expense to be on the safe side for our chapter 7. We are current. So do I just not sign the reaf papers when they come in the mail, and do I just wait until my 341 is over and then stop paying on it and surrender it when ever they come looking for it?

[albacore44]

well i'll tell you what i'm doing and what my Att told me. One of my cars the payment is $370 a month Just before my consultation I decided i will give this one up since I really dont need it and, I owe just about what its worth, and I just dont want that payment post BK. . My Att said to continue to pay through my discharge as i need the expense to ensure my Ch-7. After the discharge, i'll give it up since the loan is now discharged.

Up side is i get my Ch-7. Down side is i got to make about 3 more payments

Do not re-affirm unless you absolutely have to. just ride through. if your leinholder sends re-affirmation papers, try to ignore them and see what happens

[Michigan1951]

What if you reaff a car, and after discharge you let it get repo'd?

well i'll tell you what i'm doing and what my Att told me. One of my cars the payment is $370 a month Just before my consultation I decided i will give this one up since I really dont need it and, I owe just about what its worth, and I just dont want that payment post BK. . My Att said to continue to pay through my discharge as i need the expense to ensure my Ch-7. After the discharge, i'll give it up since the loan is now discharged.

Up side is i get my Ch-7. Down side is i got to make about 3 more payments

Do not re-affirm unless you absolutely have to. just ride through. if your leinholder sends re-affirmation papers, try to ignore them and see what happens

I wonder what happens if a person does reaff a car loan, and later can't make the payments, and it gets repo'd? Would that person have to settle the amount leftover after the lender sells it off? I can see why some do not sign reaff's because of this.........Does that wreck your credit even more?

[debtsucks]

I wonder what happens if a person does reaff a car loan, and later can't make the payments, and it gets repo'd? Would that person have to settle the amount leftover after the lender sells it off? I can see why some do not sign reaff's because of this.........Does that wreck your credit even more?

I think if I remember correctly, you are then responsible for the remainder of the loan, and you aren't protected at all under the bankruptcy. I think it is looked at as pretty much a new agreement. I'm not 100% on it. I'm sure someone will correct me if I am wrong.

[Chowder]

I think if I remember correctly, you are then responsible for the remainder of the loan, and you aren't protected at all under the bankruptcy. I think it is looked at as pretty much a new agreement.

Yep. And they'll come after you for any deficiency.