Chapter 7 no asset and car payments (behind)

[wirelessdog]

I filed and individual chapter 7 no asset pro se yesterday. Assigned a case number today. My wife and I have a car. We are currently behind two payments.

Questions:

1. If I intend to keep the car do I need to make good on the two payments it is behind

2. Can the creditor repo the car or am I protected by the automatic stay?

3. If the creditor cannot repo the car and I need to make good on the payments, how long do I have before they can have the automatic stay lifted and repo the car?

[newbie2]

I filed and individual chapter 7 no asset pro se yesterday. Assigned a case number today. My wife and I have a car. We are currently behind two payments.

Questions:

1. If I intend to keep the car do I need to make good on the two payments it is behind

2. Can the creditor repo the car or am I protected by the automatic stay?

3. If the creditor cannot repo the car and I need to make good on the payments, how long do I have before they can have the automatic stay lifted and repo the car?

The creditor cannot repo the car now, but they can file for a relief of stay (and probably will if you are 2 payments behind). They can file for it at any time now, there is no telling as to how long it will take your particular lender. Your choices are pretty simple: Get the payments caught up or be prepared for them to file for relief from stay and repo.

[Chowder]

1. If I intend to keep the car do I need to make good on the two payments it is behind

Yes. Or make arrangements with the creditor. Some play nicer than others.

2. Can the creditor repo the car or am I protected by the automatic stay?

Legally, they must be granted a Relief in order to repo. However, depending on lender, if I were you, I would not let this technicality keep me from taking precautions to make it impossible to get to the car.

3. If the creditor cannot repo the car and I need to make good on the payments, how long do I have before they can have the automatic stay lifted and repo the car?

I'd ballpark that in the 'week' range.

[Clabbergirl]

I've been reading this thread as I had similar concerns initially. In my situation, however, I've decided to let the car go back to the finance co. (Wells Fargo). Any reason I need to pay them while I'm protected by the Chapter 7 stay?

[newbie2]

I've been reading this thread as I had similar concerns initially. In my situation, however, I've decided to let the car go back to the finance co. (Wells Fargo). Any reason I need to pay them while I'm protected by the Chapter 7 stay?

None. You're giving it back, why pay them? You'll be throwing away money.

[Clabbergirl]

Well I still need a ride, and I'd like to keep the ride as long as I can without that payment so I can save up for something else. I guess my question should have been - Can they repossess the vehicle while I'm protected by the BK stay? They have not yet filed to have the stay removed. I don't want to pay for a car I'm not keeping, but I also don't want to come outside at 6am and see it missing from my driveway (until the discharge).

[newbie2]

As long as the automatic stay is in force they can't touch the car.

[Chowder]

Well I still need a ride, and I'd like to keep the ride as long as I can without that payment so I can save up for something else. I guess my question should have been - Can they repossess the vehicle while I'm protected by the BK stay? They have not yet filed to have the stay removed. I don't want to pay for a car I'm not keeping, but I also don't want to come outside at 6am and see it missing from my driveway (until the discharge).

The law is without a relief of stay they cannot repo. Filing for that relief is standard operating procedure though. Plan on it. And even though it's the law, repos sans relief happen quite often. Yeah, I know. You can raise a stink and get it back. There are threads here from folks who have done that. Search them out to see just what a complete royal PITA is was to get back a car your going to give back anyway.
Bottom line. If you need the car take precautions by making it as hard as possible to get to.

[disconapper]

I am in the same boat (or car) as you clabbergirl.

My car is behind, I'm about 2 weeks away from filing for Chapter 7. I do not intend on keeping the vehicle. It is a bad loan to have post bankruptcy for my current income. (High payment, high rate, very much upside down) It's best if I walk away from the car and loan altogether. My biggest fears are: they reposes the car before I have filed or they file a relief of stay after I'm filed and I'm left stranded. But, these are risks I have to take. I will not be making any more payments on this vehicle since I intend on giving it up and since I'm so close to filing. (I'm paying my attorney with the money that would have gone to the car payment, I have no choice at this point, I need to get filed, I have been sued by a creditor as well.) My biggest hope is they do not file a relief from stay and I can keep the car during the process allowing me to save for a clunker or big down payment on a new loan.

I am currently taking precautions by making the vehicle difficult to find, I'm 30 days late on the loan so I know they can repo at anytime. I'm not keeping the gas tank full and it needs an oil change which I'm putting off, though I probably will eventually get the oil changed, I don't want to damage the vehicle. Thankfully, I work in a very secured location, behind gates with armed guards, for anyone to get through security to see me, I'd have to authorize it, so I have some control at work.

[Clabbergirl]

There are more similarities to our stories, disconapper! I am giving my car back for the same reason - upside down on the loan, high payment, 5 year old car with over 130K miles. It's been a great car and I love it, but not that much. I was on the fence at first on whether to do the pay-and-stay thing after a BK or to give it back, so I caught payments up prior to filing. I'm a month behind now though, and will be more before things are discharged. My lender is Wells Fargo, and they have not yet asked for a relief of stay. I do hope they don't repo it before its time; looks like I better start parking it in the secured garage at work! I appreciate your suggestions too - keeping less gas in it, not getting repairs. Mine needs and oil change now and well, it's not gonna get one.

And I filed for the same reason - a creditor was very aggressive and filed a suit against me. In my area, it is common to have a 2 month overdue period before repossessions start happening. But I'm not going to be too careful. Good luck with your 7!

[disconapper]

Yea Clabbergirl, it seems so many stories on this forum are all to similar, sad but true!.

You have already filed your bankruptcy correct? There is no reason you should have to hide your vehicle, the lender can't touch it unless they file a Relief of Stay and you would know if they had. That's even if the car loan is behind, I specifically asked my attorney that question yesterday.

I had a meeting with my attorney yesterday to specifically discuss the car loan. He said I have lots of options and they are going to pursue the ones that will keep me in the car the longest, allowing me time to save money for another car, because after all, I do need transportation to get to work. I informed him I have zero intentions of paying anymore money on the car, even if I am not officially filed, it's a risk I have to take at this point. That is assuming my lender (Santander) doesn't offer me a better loan.

He said the moment he files the Automatic Stay goes into place and I could even put a copy of the filing and case number on the windshield of the vehicle if I wanted. (Not gonna do that, but it's an option, to prevent repossession while things get mailed out to lenders.)

We'll then file a re-affirmation and see if the Lender comes back with a better offer, better rate, term, payments etc. His firm and no judge is going to sign off on a re-affirmation that doesn't make sense. And I don't have to sign anything if I don't want to.

He said the whole process takes time and the beauty of filing bankruptcy is my time is protected by the courts (once I'm officially filed of course).

He also said that Santander is notoriously slow. But, every case is different, I guess it depends on how bad they want the loan or the car back.

If the lender does decide to file a relief of stay, that also takes time. All positive things, gives me some options. And all within the guise of the Chapter 7 itself.

Chapter 7 is a beautiful thing, I'm actually looking forward to making it official. Should be filed by the 25th of this month and that date can't come soon enough. In the interim, I'm making my car a bit difficult to find.

And good luck with your Chapter 7, hope to see you "on the other side"...that's the discharge side that is!

[disconapper]

Sorry Clabbergirl, I mis-read your post! Glad to read Wells Fargo has not filed a Relief from Stay yet, should be no reason to make your car difficult to find as of yet! Good Luck, I hope it works out!

[lwh1961]

I'm going to tell you my bizarre story. I filed C7 in January. At the time I had not paid my car payment since November. I checked that I was going to reaffirm it at the time of filing. Fast forward to today and I still have not made a car payment since November. They never filed a Relief from Stay. The other day I got the reaffirmation agreement the other day, but I don't think I'm going to reaffirm. I owe about what it's worth. I've asked my attorney to see if that loan amount is negotiable and I haven't hear back from her yet. I might reaffirm if the number comes back with something I can live with. I was discharged this week so I suspect they will be coming to get it shortly if I don't reaffirm.

It's bizarre to me they didn't file a Stay of Relief. Also since its a credit union I'm surprised they didn't try and tack on my credit card debt.

[disconapper]

I'm going to tell you my bizarre story. I filed C7 in January. At the time I had not paid my car payment since November. I checked that I was going to reaffirm it at the time of filing. Fast forward to today and I still have not made a car payment since November. They never filed a Relief from Stay. The other day I got the reaffirmation agreement the other day, but I don't think I'm going to reaffirm. I owe about what it's worth. I've asked my attorney to see if that loan amount is negotiable and I haven't hear back from her yet. I might reaffirm if the number comes back with something I can live with. I was discharged this week so I suspect they will be coming to get it shortly if I don't reaffirm.

It's bizarre to me they didn't file a Stay of Relief. Also since its a credit union I'm surprised they didn't try and tack on my credit card debt.

That's exactly what my attorney told me yesterday. He said that he's had people sit keep their cars for months and months after the discharge, all the while not being liable for the debt. Seems bizarre indeed, especially (God forbid) a car accident happens or something and the vehicle is totaled, then they really are at a loss. But it happens, or so I've been told (and so I read here). Guess it depends on how badly the lender wants the car back, how much of a loss they are going to take on the loan etc. I hope to have the same luck as you lwh1961, that way I'll have some time to save my pennies!