Lender may take car (Off topic)

[cz3ch]

I'm in a chapter 13 and am current on my payments on my primary vehicle. I spoke to the lender and they are saying they may want the car back.

Now in general this doesn't pose a problem but my friend has been driving it for a while and paying the notes. She's paid a total of 6000.00 so far towards the vehicle.

If the lender decides to take the vehicle what can my friend do to me? Bring me up on criminal charges? File a civil lawsuit to get her money back? I'm really afraid this situation might get bad and I don't want to go to jail for something that can be solved either outside of court or via civil suit.

She is aware of the bankruptcy and I told her early on that the lender could come after the car, she said "we'll deal with it then".

Any lawyers or law-savvy readers out there? I could really use some help to find out what I'm up against.

[HHM]

You may want to fill in the picture a bit.

"my friend has been driving it for a while and paying the notes"

If you are current on the payments and in chapter 13 BK...why and how is the lender entitled to the vehicle?

In any event, let's assume for a second that the friend was paying you and you weren't paying the note. It doesn't sound like you transferred ownership. (which is good). Basically, you and your friend have a defacto lease. The friend made payments, you let the friend drive the car. The friend received value for the money she paid. That is nothing more than a lease, nothing wrong with that.

However, if you and your friend were under the impression that you were selling the car to her, and you promised that he money paid would go to pay off the note and once $x amount was paid you would transfer title...if that is what happened, then you have a bigger problem. But even then, the is a civil suit. Nothing criminal.

[cz3ch]

You may want to fill in the picture a bit.



If you are current on the payments and in chapter 13 BK...why and how is the lender entitled to the vehicle?

In any event, let's assume for a second that the friend was paying you and you weren't paying the note. It doesn't sound like you transferred ownership. (which is good). Basically, you and your friend have a defacto lease. The friend made payments, you let the friend drive the car. The friend received value for the money she paid. That is nothing more than a lease, nothing wrong with that.

However, if you and your friend were under the impression that you were selling the car to her, and you promised that he money paid would go to pay off the note and once $x amount was paid you would transfer title...if that is what happened, then you have a bigger problem. But even then, the is a civil suit. Nothing criminal.

My friend has been paying the note to me, which I've paid the lender each month. Yes, the money she pays goes towards eventual ownership of the vehicle. The lender said they may exercise their right to the vehicle. I'm not sure how they are even in the right to say this since I'm current and in a chapter 13 (not surrendering). I'm hoping it's just a big mixup and maybe the lender hasn't received notice of my Chapter 13 conversion. I have a phone call Monday with them to straighten it up.

My biggest concern was if somehow they were able to take the car, what could happen to me? I've never been in a civil suit. Would she simply sue me for the money she paid (damages)? I assume since it's not criminal I wouldn't be going to jail, I would simply have a judgement to pay her what she's awarded. Forgive my ignorance, but I don't know how these things work.

Thanks in advance, HHM

[HHM]

Sounds like a mix-up on the banks end. If yours is a converted case, then they may not be aware of it. If the bank is under the impression you are in a chap 7, then they are probably angling for a reaffirmation agreement. I would let them know you are in active 13, send the appropriate paperwork, (chapter 13 plan and notice of conversion) and that should straighten up.

If your friend did sue you, worse case scenario, she gets a judgment for some amount of money, but I highly doubt it will come to that, and the friends case is by no means a slam dunk. If the car company took the car while you were current on payments, that is beyond your control, you didn't breach any express or implied agreement with your friend.

[cz3ch]

Sounds like a mix-up on the banks end. If yours is a converted case, then they may not be aware of it. If the bank is under the impression you are in a chap 7, then they are probably angling for a reaffirmation agreement. I would let them know you are in active 13, send the appropriate paperwork, (chapter 13 plan and notice of conversion) and that should straighten up.

If your friend did sue you, worse case scenario, she gets a judgment for some amount of money, but I highly doubt it will come to that, and the friends case is by no means a slam dunk. If the car company took the car while you were current on payments, that is beyond your control, you didn't breach any express or implied agreement with your friend.

It sounds like they think I'm still in a 7. They sent a reaffirmation agreement which my lawyers tossed once I got into a 13. When I talk to them Monday I'll see what they want and confirm with them that I'm in an active 13 and will be keeping the car.

Thanks for priming me on a civil suit and what could happen. One issue for her is the fact she's been using and enjoying the car all these months. It may be hard for her to sue for $6,000.00 worth of payments when she put 20k miles on the vehicle and has been in two wrecks. Yes, if the lender took the car that would be outside of my control and I could explain that to the judge that I had every intent on keeping the agreement but the lender pulled the vehicle.

Anyways, going to calm myself and hopefully none of this happens. I'll know more Monday and will update the thread then.

Thanks for your wisdom, HHM.

[cz3ch]

Also something to add. My payment was due today and I paid it yesterday. They said I should be current, but I'm worried the payment may not process in time and give them reason to take the car. Any thoughts on this? It's going to take a few days to process the check by phone but they said I was current. Just overly concerned about this whole situation.

[cz3ch]

This was worry for nothing. When I called in today they said they've been notified of the chapter 13 and cannot allow me access to the website to pay my payment. I can still pay in person at the dealer or via check by phone which I did. Thanks for your help, HHM.