Please help! I am in a paniac....

[MellyBMe]

I recently filed for chapter 7 bankruptcy. My hearing is on November 30th. I included my car in the bankruptcy because I could not afford the payments. My plan was for my mom to get a car loan in her name because she has good credit and I would just make the payments. Unfortunately, it isn't working out that way. She has good credit, but is basically self employed (contract worker). No one seems to want to give her a loan.

The company that has my car loan has already requested the stay be lifted and I am assuming they can come get my car at any time. I don't know what to do because I am now going to be without a car. I received a notice in the mail yesterday from 722 redemption and I unfortunately they don't open until Monday. I was hoping someone might have some suggestions as to what to do? I live 5 hours away from my family and have no other means of transportation.

PLEASE HELP!!!

Melly

[mizzmonick19]

I recommend you calling 722 redemption...they should be able to help you save your car...I was going to go thru them but your car has to be a year 04 and newer...if you fall in that category I would try them..Good Luck

[MellyBMe]

My car is an 09. What happens if they come this weekend to get my car? Will I be able to get it back? Also, my car payments are $430 which I cannot afford and that's why I included it in on the bankruptcy. Will they lower my payments? I am just a tad confused on how that works.

Thanks for you quick response!!

[mizzmonick19]

No problem...from posts I've read here, and other websites, and from speaking to my attorney...they can lower your payments...I'm no expert but I believe you should have a little more time at least until Monday...have you've tired calling 722 today to see if they are open? Also check out their website to see if they have a FAQs page...

[DebtEnder]

First take a breath. Them filing for relief does not automatically give them the right to come repo the car. There has to be a hearing, when is that hearing date set? If you do not answer, and in your case your effectively trying to redeem it via 722, then I would respond and let the judge know that, then the motion would most likely be granted. But again, nothing can happen until the judge grants the motion of relief if stay.

[dumpinmydebt]

722 will create a new loan for what the car is currently worth, with probably around a 23% interest rate. So it may or may not be cheaper. It really depends on how upside down you are on the loan.

[MellyBMe]

I got a notice of motion from the attorney for Americredit which is who holds my car loan. It is dated November 1st and says that I had 14 days to respond. I did not respond to it, and I can only assume my attorney didn't either. I have not received a notice for a hearing date and do not see one listed. I just assumed that they could come and get my car at any time if I did not respond to them in 14 days.

[DebtEnder]

Ok so they filed for relief mere days after you filed BK then? And you chose to ignore the motion? If you have a pacer account look up your case and see if the motion was passed. If you don't have pacer then on Monday lean on your attorney and find out the status of the motion.

I feel for you, but ignoring BK documents does not help you in this case. You will often find BK judges to be understanding in the needs of debtors as far as extending stays so you can get redemption cash worked out or some other arrangement. If the motion has passed then I would suggest you keep your car locked in a garage at all times. This includes work, shopping, etc etc.

[MellyBMe]

I filed on October 25th and they filed the motion on November 1st. It wasn't that I chose to ignore it, I didn't know that I needed to respond. I emailed my attorney to ask him if a response could be that I needed more time to find other transportation and he responded with this:

"I cannot file an answer to the lenders claim to give you more time because it could be considered "fraud on the court."

So I just assumed there was nothing I could do. I suppose that's what I get for assuming. But I will call my attorney first thing Monday morning to see if he can give me an update. Unfortunately, I don't have the means to keep my car locked in a garage at all times.

[DebtEnder]

So your attorney is a spineless idiot, fair enough plenty out there. I assume you don't have a pacer account. If you did I would be checking that and see when the motion for relief is effective.

[MellyBMe]

What makes him a spineless idiot?? And no, I don't have a pacer account. I had never heard of it until you mentioned it.

[DebtEnder]

All I can tell you now is call your attorney on Monday as well as 722 and see what can be done and exactly where this motion stands.

[df04527]

Pacer is a national database that holds BK filings, among other things. Anyone can create an ID and get access. Google it. Be very cautious using it until you understand how the billing works. If you get a Pacer ID today - you can look up your case -- get a status -- the folks on this board will tell you exactly what it means in most cases. I believe there is also a thread here that tells you all about Pacer.

good luck to you.

[tcreegan]

Hi MellyBMe,

There is a 'stickie' about PACER, its not very hard to do. The billing is 8 cents a page, and unless you are over $10 for a quarter (3months) they don't even bill you. I use "docket report' and it shows everything filed in the case and they haven't billed me anything.

I also had a car through AmeriCredit, they filed a motion for relief pretty early then didn't come for the car for a couple months.

Not sure why your atty thinks it would be 'fraud upon the court' but if you're on the loan, there is no equity, and the car is collateral, contesting is more likely to be an 'annoyance upon the court'

Now if there IS equity, you got something to object about...

If you really need to keep the car, you need to contact AmeriCredit and make arrangements with them. They were pretty good about working w/ us prior to the BK. Remember that in the BK, they are restricted from contacting you, so you have to contact them. They might want to you to 'reaffirm' the debt, this makes you legally liable for the debt after the BK. Generally not a great idea, but you might be able to renogtiate new terms in your favor. Whatever happens, remember you have 60 days where you can rescind the reaffirmation.

Good luck with this, hope it works out for you,

Tom in Colo

[dumpinmydebt]

I'm going to assume you are past due on your payments, since they filed for the relief so quickly. The lender is entitled to their property to recover their losses.

I would definitely get a hold of 722 Monday morning. Even if they can't redeem your current car, they may be able to find a different one for you. There really isn't anything your attorney can do.