Oooops

[sar2547]

Ok so we had our continued 341 last week. first one was in early Feb 2011. The day after this last 341 I check Pacer and there is a "Report of No Distribution". I have only 3 payments left on my vehicle. I dont want to put any more paperwork in front of our Trustee as far as a reaffirm for the vehicle. I just want to be done. I only owe about $1,800 and can probably buckle down and pay it off in about 6 weeks. Is there anything bad that can come of this? Our discharge should be any day, since our first 341 was back in early Feb.

OOPS....MEANT TO PUT THIS IN THE CHAPTER 7 FORUM

[AngelinaCat]

Alrighty, you don't have to scream. I will move it. Please do not scream.

[btbeme]

I am assuming that you did not reaffirm your vehicle loan...

If not, you will likely be OK. Since your case is still open, your loan company will likely not even talk to you, but that's OK - they likely will not try anything until after discharge. As soon as the discharge comes through, they MIGHT try to grab the vehicle back.

But, since your discharge is about 60+ days away, and you say you can pay off the vehicle in less time than that, you will likely be just fine. Pay it off, keep the proof of payments, and call the loan company as soon as you see your discharge. Tell them that you have the discharge, will be happy to supply it to them, and have paid your loan in full. Ask for the title and release of lien. You should get them quickly.

If you cannot pay off before discharge, do the same thing - call them and make arrangements for as quick of a payoff as possible. As long as you communicate with the loan company, there shouldn't be any surprises.

I had an almost identical situation - three payments left at the time of my 341, paid off shortly after discharge, received my title and lien release in the mail...and also received a "Pay Up or We Will Repo" letter shortly after receiving the title. A quick phone call cleared that up, but often times the left hand does not know what the right hand is doing...so cover your bases with communication and documentation.

Bonus - having current car payments on record will help you credit-wise.