Trustee Report of No Distribution?

[Blossoms]

Hello all,

My husband and I are in the middle of a Chapter 7. We had our 341 meeting last Thursday. Today I logged into Pacer, and saw the following on the case docket:

Chapter 7 Trustee's Report of No Distribution:...Meeting of creditors held and concluded. Key information about this case as reported in schedules filed by the debtor(s) or otherwise found in the case record: This case was pending for 1 months. Assets Abandoned(without deducting any secured claims): $ 4375.00, Assets Exempt: $ 29625.00, Claims Scheduled: $ 217826.46, Claims Asserted: Not Applicable, Claims scheduled to be discharged without payment(without deducting the value of collateral or debts excepted from discharge): $ 217826.46. (Entered: 12/09/2013)

My husband and I have a vehicle which we are surrendering in the bankruptcy, due to us getting a terrible deal on it (24.99% interest rate, vehicle is 10 years old, and very high mileage, plus needs a lot of costly repairs, owe nearly 3 times what the vehicle is actually worth, etc).

I assume that is what the "Assets Abandoned" is referring to, as we have no other non exempt assets? If so, does that mean that the lender is free now to come repo the vehicle?

This is our only vehicle, and my husband needs it to get back and forth to work (taking public transportation isn't an option, due to where his job is located, and the overtime hours that he works). We're trying to scrape up the money to buy an older, beater car for cash, until our bankruptcy is discharged, and we can (hopefully) get financed for something better, at a decent rate. We haven't been able to do that yet though, with me being laid off from work. I was hoping we'd get to hold on the vehicle at least until our discharge. Now after seeing that "assets abandoned", I'm worried we won't be able to keep it that long. Am I right, or might we have a little longer to use the vehicle?

Thanks in advance for any replies.

[Blossoms]

Also, what does the "Claims Scheduled" refer to? Our debts that we listed on the bankruptcy petition?

[tobee43]

it means you have nothing that anything wants and it's the first step to your discharge and close of your bk.

it's happy news.

[Blossoms]

it means you have nothing that anything wants and it's the first step to your discharge and close of your bk.

it's happy news.

Great, thank you!! Does the trustee "abandoning" our vehicle, mean that the lender is free to come pick it up? Or can the lender not come get it as long as the automatic stay is still in effect?

[tobee43]

most likely at this point until the discharge your auto may be safe. you did not decide to keep it?? if not, once the stay is lifted which can be any day then they can come if that is what you know or except is going to happen. one would or should know by now. of course if you didn't decide to keep it i'm sure they are waiting in the wings..

not everything is "dischargable" in a bk. if you affirmed your car which many do, one just continues their payments if you are way behind then absolutely once the stay slay is lifted they are entitled to get back their property. similar to your house if you listed it. the lenders have the right to pursue foreclosure etc.

[brokehmowner]

most likely at this point until the discharge your auto may be safe. you did not decide to keep it?? if not, once the stay is lifted which can be any day then they can come if that is what you know or except is going to happen. one would or should know by now. of course if you didn't decide to keep it i'm sure they are waiting in the wings..

not everything is "dischargable" in a bk. if you affirmed your car which many do, one just continues their payments if you are way behind then absolutely once the stay slay is lifted they are entitled to get back their property. similar to your house if you listed it. the lenders have the right to pursue foreclosure etc.

Re your comment on the statement I bolded: are you saying that "pay and stay" is not automatic and the mortgage holder can foreclose even if you are up to date on payments? (assuming no reaffiramtion)

[tobee43]

lol! thanks i re read it. no way is pay and stay "automatic" it's a decision you make. some pay and stay, others surrender, others affirm. no, a lender will not foreclose on you if you are up to date on your payments. with us, we surrendered..although that only means in "legal" terms one makes the asset or collateral is made assessable to the creditor. it doesn't necessarily mean the creditor will go after it. however, in the case of a home the creditor will go after the collateral which is the house. once your bk is done they are (if not listed on your bk) allowed to pursue you for payment.

[brokehmowner]

lol! thanks i re read it. no way is pay and stay "automatic" it's a decision you make. some pay and stay, others surrender, others affirm. no, a lender will not foreclose on you if you are up to date on your payments. with us, we surrendered..although that only means in "legal" terms one makes the asset or collateral is made assessable to the creditor. it doesn't necessarily mean the creditor will go after it. however, in the case of a home the creditor will go after the collateral which is the house. once your bk is done they are (if not listed on your bk) allowed to pursue you for payment.

That's pretty much what I was asking -- we chose to "pay and stay." The mortgage was discharged in the chapter 7, but we have mod and don't mind staying because the mod is about $500.00 below what we could rent a comparable house for. But what I was asking is, if you don't reaffirm, and just stay and pay the mortgage, doesn't that prohibit the bank from foreclosing? Or another way to ask is, if you file a chapter 7, (nd DON'T reaffirm) is that an automatic default, and thus the mortgage holder does have a right to tell you to get out whether you are up to date or not, because you defaulted on the loan by merely filing chapter 7.

I can't see the benefit of them foreclosing on us since the house is way under water, as long as we keep making the payments. But I guess if that's the case, reaffirmation wouldn't even be necessary.

[tobee43]

i have to chuckle about that one...our home was and is still underwater way over 200k today! we were right in the middle of our loan mod when we got served....had 30 days to answer the summons and yet, they haven't foreclosed in well over 5 years even though we walked away. lenders do not think like humans or rational, there is no reasoning as to what they will do. they do want and when they please.

please do not reaffirm your mortgage or any loan mod...that $500 drop in your payment can change, i have seen it happen before. you really want to keep a house and pay for a house that has no value. that's really up to you. what we did was the math...keeping our home which we lived in for over 30 years was a lose lose situation. we would die and leave our children in debt. your situation is individual, and you need to make the decision that makes and works for you and is best for you and yours.

so we left the house, moved out of state, filed bk and within 4 years brought a new home paid for it in less than 3 years and are now buying another house cash. so, it really depends on what you see has a long term situation and those outcomes.

it's great that you did not affirm and your mortgage was listed and you are paying and staying...which simply means as long as you do not sign anything else with the bank, if you circumstances change in the future you can walk. you want that option. or at least most people do.

[LadyInTheRed]

Or another way to ask is, if you file a chapter 7, (nd DON'T reaffirm) is that an automatic default, and thus the mortgage holder does have a right to tell you to get out whether you are up to date or not, because you defaulted on the loan by merely filing chapter 7.

If the filing of Chap 7 is defined as an event of default in the loan agreement and that provision is enforceable under state law, the lender can foreclose after the automatic stay is lifted. Whether or not they are likely to foreclose while you are current on payments is another question. But, the lender can't just say "get out". They must first go through the foreclosure process. Nobody can kick you out while you have legal title.

[LadyInTheRed]

Blossoms, I am pretty sure (but not positive, so ask your attorney) that if the trustee abandoned his interest in the car, the automatic stay no longer applies to the creditor's right to repossess the vehicle. The creditor might wait until discharge anyway. But, I'd be prepared for repossession at any moment.