Ally Auto cancelled pending online payment

[ld2366eh]

So we filed our Chapter 7 bankruptcy petition Thursday October 11th. I had previously set up an online payment for our car loan payment due 10/15 dated 10/12. I can get into the site, but can't see my car loan information, and the payment was never processed. Has this ever happened to anyone before? I'm wondering now how we pay. Will I get a paper bill? I wasn't expecting the EFT to get cancelled? Any thoughts?

[justbroke]

This does happen. They do not want to violate the stay by collecting. You will need to contact their Bankruptcy Department to make a payment and you may need to mail in the payment to the general payment address. Are you keeping the car? What did you put on your Statement of Intentions?

Note: you will not receive a paper bill. They cannot send you a bill because that would be a violation of the stay.

[ld2366eh]

On the statement of intentions, we put that we are keeping the vehicle and reaffirming, although our attorney has advised us to not sign the reaffirmation agreement. We want to pay it for now until we decide it's not in our best interest to keep it (high rate and under water) so we will do as our attorney advises and not sign the reaffirmation. I'll contact the BK department and arrange a payment for the month of October. Thanks for the advice!!!

Are we under a specific time frame to make the payment, or as long as the automatic stay is in effect we have some time, and as long as we eventually pay and keep current we are good? Just trying to determine the urgency... We were current when we filed...

[justbroke]

As long as the stay is in effect, they won't bother you, but they may also move for relief from the stay if you do not pay. Just make sure you stay "current" with the billing. I don't recall if Ally is one of those which require reaffirmation and allows ride-throughs. Of course, your attorney would know more about the ride-through.

So, just make sure you have the right payment address and don't give them a reason to repossess.

[ld2366eh]

Thank you! We sure will!!!

[ksgirl38]

Your attorney should have told you that any online payments or automatic payments would stop. Most people pay by money order right before they file. You should be good if you mail them a payment right away.