HELP! Need clarification on chapter 7 redemption option

[everythingel]

Hello, I filed pro se chapter 7. I really have nothing I need to keep except my truck. The creditor of the truck is going after me hard. They have filed for a relief of the automatic stay and I filed my response requesting the judge hear both sides before ruling that they can just come get the truck. Here's the low down:
I bought the truck 2 yrs ago. The amount owed was 13000. I have paid $6500 so far. Once the dealer found out i filed bankruptcy they refused to take anymore payments from me and immediately began looking for the truck until they received the letter of automatic stay. The blue book & nada fair market value of the truck is only 6700. So does this mean that if the court rules I can redeem I only pay the difference of 200 bucks??? I am not wanting to get a loan thru the redemption loan companies. I simply want to know if since the blue book value and the amounts i have already paid are almost the same, what would I have to pay to keep my vehicle? Or do I have to give the truck back since I still owe the remainder of the 13000? And what about them not accepting my payments now? Is that going to hurt ME when I go to court next week to fight them? Anyone that can offer any info, I would greatly appreciate it! Thanks!

[despritfreya]

I bought the truck 2 yrs ago. The amount owed was 13000. I have paid $6500 so far. . . The blue book & nada fair market value of the truck is only 6700. So does this mean that if the court rules I can redeem I only pay the difference of 200 bucks??? And what about them not accepting my payments now?

No, you do not get to pay the difference between what you paid before filing bk and the value as determined by the bk court. Redemption is the payment of the value of the item to the creditor as determined by the bk court and has nothing to do with what happened before filing. As a result, if you want to pay a lump sum it will be either the balance owed or the value of the item whichever is less.

Assuming you were delinquent in your payment prior to filing the lender does not have to accept payments unless you bring the account fully current and reaffirm. If you want to keep the vehicle you have two choices, redemption or reaffirmation.

Des.

[everythingel]

thank you for your reply. I wasnt late at all on my payments. Not one time. It is the one thing that I always made sure I paid because I needed the vehicle to make sure I can get to work. I was told by my bankruptcy clerk I should "make sure" that all creditors are aware of my filing even though everyone was listed on the matrix. Once the dealer was informed of the bankruptcy by me verbally, they stopped accepting payments and demanded that I surrender the vehicle--the very day. This is not Ford or some other large dealer, its a very small car lot. They just freaked out and i had no intention of not paying for the truck. Its half way paid off. So ...basically what you are saying is that Im screwed. Because the fair market value AND the amount left owed is about the same. So I would have to pay a lump sum of about 7000 even though Ive already paid 7000?? Omg im so confused. lol

[despritfreya]

thank you for your reply. I wasnt late at all on my payments. Not one time. . .Once the dealer was informed of the bankruptcy by me verbally, they stopped accepting payments and demanded that I surrender the vehicle--the very day.

Then the lender should not have refused payments and had no right to demand its surrender. Hopefully you were "banking" those payments and can bring the account current (with an Order from the Court that the lender accept the payments). Also, the vehicle needs to be fully insured. The size of the "buy here-pay here" dealership is not the issue and I can bet you are not the only customer of the dealership that has filed. My guess is that the dealership is "walking all over you" because (as it appears) you do not have an attorney.

You need to bring the account current and seek to reaffirm the debt since you probably do not have enough $$ to cash the lender out for the value of the vehicle (or the balance owed, whichever is less). While reaffirmation agreements are voluntary between the parties, I cannot imagine the Judge allowing the lender to take back the property if your payments are current and you seek to reaffirm but the lender refuses.

Des.