Relief from automatic stay..

[Carloscda]

Just received a letter from Honda stating that they put in motion for relief, I have 11 days to appeal.
Only 7k is left on the car. It's not current because I was first in 13, recently converted to 7. So for 6 months I was paying into the 13.

At first attorney said they wanted 5k up front! Really if I had 5k on hand I would have never filled in the first place! Bunch of D's!!

Anyway what will happen now?

Thanks in advanced!

[LimpDisc]

So you have not made a car payment in 6 months, correct? If they get the relief from stay they will probably repo the car.

[BKDefender]

I would be inclined to agree. The reason to file a 13 is to fix the arrears over a 3-5 year term to keep them from repo'ing the car. If you're in a 7 now and are not able to catch-up the arrears to their satisfaction, then you're still in default and they'll repo and sell the car. You won't be liable for any deficiency but you won't have a car.

--William

[Carloscda]

The only reason it got switched to 7 from 13 in the first place was because my payment to the 13 trustee arrived a wk late. And just like that he filed to dismiss because of that? So it was then converted to 7.

[BKDefender]

You can oppose a Motion to Dismiss for one single payment and your attorney, if you had one, should know that. Or are you doing this yourself?

11 USC 1307(c) requires 'notice and a hearing' to convert or dismiss the case on motion by a trustee for your failure to commence to make timely payments under section 1326. If you were actually only one week late, and that was the sole reason the trustee requested dismissal, then you should have opposed it. It's not in the best interest of creditors to convert to a chapter 7 if your creditors would have received payments for your debts under a Chapter 13 but will receive nothing under a Chapter 7 BK. If you proved that you were able to make those payments on time from then on, it would be very reasonable for a BK judge to deny dismissal or conversion based solely on a one week late payment.

--William

[Carloscda]

Yes that was the sole reason, a wk late. And that was my 5th payment. I always tried to get them there a wk ahead of time to make sure!

I do have an attorney and he said he's never heard of a a trustee dismissing a case with the payment being only a wk late. Dude was just being am ass!

The next payment was on time!!

[BKDefender]

A trustee doesn't dismiss a case - a trustee files a Motion to Dismiss to ask your bankruptcy judge to dismiss the case. If you didn't oppose it then of course the trustee would win the dismissal or conversion to a 13.

--William

[Carloscda]

Yes he filed to dismiss in return my attorney just converted to a 7.
The whole thing is that I wanted to keep my car!

[sclay30]

I hope someone can help me out. I filed Chapter 7 Pro-Se on 1/19 with the help of a paralegal. I received a motion for relief from automatic stay today from my car finance company. I have my 341 meeting on 2/19 but their paperwork says their hearing is 2/16? Is that possible for them to have a hearing before my 341 hearing?? I planned on surrenderring the car but didnt think it would happen this soon. Can anyone help me?

[qsr]

You can get a pretty decent car for $5k. Are you sure it's worth it to keep it? If you can wipe away $5k in debt you might be better off. Being upside down on a car after BK7 doesn't sound like an ideal situation.

[Carloscda]

Their so called deal was that I pay 5k now and continue with the rest of the payments until the car is payed off. Only 7k left on the car.

03 Accord good shape 105k miles, the attorney is trying to get them to put those 5 months on the back end of the note. Plus I've already payed 4yrs into the car, not trying to just throw all that money out the window!!

[justbroke]

I hope someone can help me out. I filed Chapter 7 Pro-Se on 1/19 with the help of a paralegal. I received a motion for relief from automatic stay today from my car finance company. I have my 341 meeting on 2/19 but their paperwork says their hearing is 2/16? Is that possible for them to have a hearing before my 341 hearing?? I planned on surrenderring the car but didnt think it would happen this soon. Can anyone help me?

Yes, a hearing can come before a 341 Meeting. The hearing for the motion for relief is probably because your Statement of Intentions indicated such.

There is no help. This is what you wanted and indicated.

[sclay30]

Thanks justbroke. I thought they had to wait till my 341 meeting. I wasnt late on any payments so I thought the would have waited.

[justbroke]

Thanks justbroke. I thought they had to wait till my 341 meeting. I wasnt late on any payments so I thought the would have waited.

If you put the intention to surrender, being current is irrelevant. Had you put "Retain and Pay", that would signal a ride-through and further indicate that you would keep current on payments and keep the vehicle.

Checking the "Surrender" box is self-evident, so automobile lenders tend to move very quickly since motor vehicles values erode faster than anything else I can think of.