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Caution: Creditors holding re-affirmed loans may stop sending bills!

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    Caution: Creditors holding re-affirmed loans may stop sending bills!

    Perhaps this should be in the section on rebuilding credit, but I suspect more people will see it here...

    This was a surprise to me, and it could have been bad. I re-affirmed the loan for my car. What I never would have thought of was that Honda still counts as a creditor, and from the time of filing until a discharge happens, they are prevented by the stay from hounding me for payment. Great.. except that this includes sending me my regular bills, which I intend to pay.

    Included in the packet of paperwork that had to be signed to re-affirm the loan was an innocuous-looking statement that essentially said


    "Oh, by the way, we won't be sending you any more bills for a while. Also, we've disabled your ability to make online payments.
    If you'd like to continue making payments, you may send them to us at
    this teeny little address here...the one you can barely read"
    .

    You can read this as entrapment, or you can read it as Honda covering their butts so I don't sue them for violating the stay, but PLEASE be on the lookout for this...you're probably re-affirming in the hopes of getting a running start on rebuilding your credit, and you don't want to start off with a bunch of late payments! I addressed and stamped six envelopes, and stuck them in my checkbook, so I don't slip up and forget to make those car payments. Do whatever it takes to remind yourself.
    Filed chapter 7: June 9, 2008
    341 meeting: July 18, 2008
    last day for objections: September 16, 2008
    DISCHARGED September 18, 2008 - CLOSED September 29, 2008

    #2
    Thanks for the post. I'll be on the lookout for that since I'm re-affirming my car.
    Filed: 7/17/08
    341 Meeting: 8/25/08
    Last Day of Objections: 10/24/08
    Discharged: 11/08

    Comment


      #3
      They have not done anything unusual. We re-affirmed two cars and later changed our mind on one of them since it made more sence to use 722. Once your case is discharged and closed they will send you statements again and allow you online access.

      Comment


        #4
        Too bad other states wouldn't do what Vermont did. They BK court here actually passed a law in the past year or so stating that creditors of secured debts are REQUIRED to send monthly statements. If anyone is interested in the text of this bill let me know. I'll hunt up the link.

        k
        You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing

        Comment


          #5
          Originally posted by freshcredit View Post
          They have not done anything unusual... Once your case is discharged and closed they will send you statements again and allow you online access.
          I get it...and for the record, I don't read it as entrapment. I'm just saying it wasn't very clear, and if I hadn't noticed the ABSENCE of a bill this month, I could well have begun my "fresh start" with a slew of late payments on my record.
          Filed chapter 7: June 9, 2008
          341 meeting: July 18, 2008
          last day for objections: September 16, 2008
          DISCHARGED September 18, 2008 - CLOSED September 29, 2008

          Comment


            #6
            Also worth noting is that the same goes for a loan on which you've co-signed. I co-signed an auto loan for a friend and he stopped receiving statements/lost his web pay ability even though he's not involved in my bk.
            Ch. 7 filed: 6/13/08, Friday the 13th!
            341 hearing: 7/10/08
            Last day for objections: 9/8/08
            Discharged: 9/18/08

            Comment


              #7
              I knew by reading this board before I filed that the bills would stop coming to me. So I called the finance company of one of our vehicles and got the billing address.

              Comment


                #8
                Originally posted by Cali View Post
                I knew by reading this board before I filed that the bills would stop coming to me. So I called the finance company of one of our vehicles and got the billing address.
                Oops...really? I must have missed that! (And here I thought I read EVERYTHING on this board...)
                Filed chapter 7: June 9, 2008
                341 meeting: July 18, 2008
                last day for objections: September 16, 2008
                DISCHARGED September 18, 2008 - CLOSED September 29, 2008

                Comment


                  #9
                  Thanks

                  I guess I will be reafirming my Honda loan as well - I live in CA but not sure if i have to in this state - my attny did say that we could reaffirm but didn't mention if I must. Thanks for the information I will prepare myself for this adjustment as well - I am keeping my Civic because I cummute 100 miles a day. uuuhhh
                  I also have a Dell account that I'm still making payments on. Can I reafirm this account as well? or can I just keep paying on it?
                  Thanks for any info on the Dell account.

                  Comment

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