Pay off Car Loan After 341

[appleae]

Converted from Chapter 13 to Chapter 7 in July and had the 341 meeting 2 weeks ago. We are a no asset case and we indicated we were reaffirming the Mortgage and Auto Loan. Basically owe just a little more than 1 remaining car payment and would likely pay it off in full.

Our attorney said that the new list of assets was provided to the Trustee (just subsequent to the 341 meeting) and that it was ok to pay the car off.

We have received no correspondence from the auto finance company.

Should we just make the payment, or do we need to receive an acknowledgement first from the auto finance company that we've reaffirmed the debt?

[despritfreya]

If there is only one payment left there is nothing to reaffirm. Make the payment and demand the release of the title.

One caveat: Are you absolutely sure the vehicle's value is within the allowed exemption? Please check with your attny on this. Remember, the Chapter 7 Trustee's job is to take away non exempt assets.

[tcreegan]

Hello appleae,

The finance company cannot contact you, violates your protection under the BK. You need to contact them and request a statement, payment amount, and where to send it.

Good luck,

Tom in Colo

[appleae]

If there is only one payment left there is nothing to reaffirm. Make the payment and demand the release of the title.

One caveat: Are you absolutely sure the vehicle's value is within the allowed exemption? Please check with your attny on this. Remember, the Chapter 7 Trustee's job is to take away non exempt assets.

Well, the $500 owed on the vehicle was used in calculating the equity and definitely was a factor in determining how much of an exemption was required.

I am more concerned that by paying off the vehicle we are then "freeing it up" for the trustee to liquidate. Keep in mind we have already completed the 341 and the Trustee approved it as a "no-asset" case.

I guess the real question is whether the US trustee looks at what is happening during the 60-days following the 341 and would dismiss te case based on these minor changes

[appleae]

Ch 7 keeping car, late car payment after 341

We converted from Ch. 13 to Ch. 7 in July 2010. And reaffirmed the auto loan because there is only 1 payment left and we have every intention of paying it off. Our car was being paid through the Ch 13 plan. We have not yet made a payment outside the plan since we converted to 7 and probably will not be able to until the middle of October due to other bills (mortgage, property taxes, etc.).

I discussed this with our auto lender. They recommended we pay by the end of September otherwise we place ourselves at risk if we remain in default beyond the discharge.

The 60-day deadline for creditors to file a claim is the beginning of October. According to the Sticky in this forum Discharge occurs at day 61 after the 341 but may experience an administrative delay of up to 10 days.

Does anyone know if this is still the case?

And what sort of problems are we creating for ourselves by holding out on this car payment until (what will likely be) just days after the discharge?

[tcreegan]

check repo forum

Hi appleae,

I discussed this with our auto lender. They recommended we pay by the end of September otherwise we place ourselves at risk if we remain in default beyond the discharge.

Will they really repo with one payment remaining? Is that profitable for them?
I would go over to the repo forum here and see what folks say is likely to happen...

As to discharge timeline, we are 64 days past the 341 and no discharge yet.....

Tom in Colo