top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Car Loan/Automatic Default question...

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Car Loan/Automatic Default question...

    Hello. I have a concern about my current car loan and my possible upcoming need to file Chapter 7 here in South Carolina. My car loan is only a few months old (through Capital One Auto Finance) and I owe about $19,000. I intend to honor this loan, since I of course need a car, and don't plan on including the loan in my bankruptcy. Instead, I plan to keep paying the thing off each month as usual. I have read on these forums about the "reaffirming the loan" process and would be glad to do so.

    However, I just looked over my Capital One loan's "Note and Security Agreement," and it states the following:

    "DEFAULT: If... ...(3) you initiate or have initiated against you any bankruptcy or insolvency proceedings... ...")

    Does this mean I won't be able to keep this loan current if I file? Repo? I am worried. This is my first post and am just at the beginning stages of my research, but any help would be appreciated. If I end up going through with filing, I'll be attempting to do it myself.

    The first of many questions to come, I'm sure...THANKS.

    #2
    First, you will have to include (list) the loan in your bankruptcy papers. There's no way around that.

    Second, from what I've been told, as long as you keep making the payments, no one will come after your vehicle.

    Hope that helps.

    Comment


      #3
      Those "automatic default upon BK" provisions tend to be held against public policy and are rarely, if ever, enforced.

      Comment


        #4
        Thank you. That is somewhat of a relief as I go forward...

        Exactly where in the process of filing does the reaffirming the loan come in? Is it something I wil initiate or the loan folks? Before or after filing?

        Thanks. Looking forward to diving in to these forums and learning a thing or two.

        Comment

        bottom Ad Widget

        Collapse
        Working...
        X