So, I called my car lender last week, told them I had filed for bankruptcy and rather than file a motion to redeem the car and all of that, that I wanted to work things out through them, get my loan balance lowered to fair market value, get signatures on everything for the new terms and then when I go into my 341 meeting, I can tell the trustee that I am doing a "retain and pay" - continue to make payments on it and keep it. Then as soon as possible, just pay it off in one lump sum.
Things went swimmingly. The woman I spoke with wasn't really sure of how it all worked, so she put me on hold several times to speak with a supervisor and by the end of the conversation, she said that she had e-mailed their bankruptcy department (and confirmed that they received it) with the figure she and I had agreed upon and they would decide if they would go with that or if they wanted to negotiate more. Either way, she said I would hear from them, but I could call on Tuesday or Wednesday of this week to check in.
So, I called this morning, and the woman I spoke with had NO idea what I was talking about. Pulled up my file, it said I called to let them know I was in bankruptcy and that's it. No mention whatsoever about ANY of the negotiating, about lowering the payoff amount, about the email she sent to the bk dept. Nothing. And the woman said "I don't know who you spoke with, but we don't do that." She went on to explain that they never discuss payment terms at ALL with someone in a bankrupty because it could be construed as them trying to collect a debt which would be in violation of the automatic stay. Also, she said that they are not in the practice of lowering any payment or pay off amounts on accounts that aren't charged off. She kept saying that and I kept asking her what it meant and she was very confusing. So I googled it real quick while we were still talking. A charged off account is basically an account where the lender feels they will probably never get their money for one reason or another. In a situation like that, they might negotiate but I am current on my payments. It was deja vu all over again, with the house - house lenders won't even talk to you about anything until you're in default on your mortgage. As long as you're making payments, why would they? It's only when they are at risk of you NOT making payments that they talk to you.
So, I called her bluff a little and told her that if they couldn't lower the payoff amount for me right now, that I was just going to have to surrender the car through the bankruptcy. I asked her if they would negotiate with me then. She said "It depends. It depends on if they think it will be worth their time and money to come get it and auction it off." Meaning, I could possibly surrender it and they might not come and get it, even if I don't make payments? Does that ever happen?
So, I guess I'm just not really sure what to do about the car. Do I file a motion to redeem it? Ugh. So much time and energy. Do I surrender and just keep paying until it's paid off (almost $6,000) or surrender it, not make payments and see if they come and take it?
Bear in mind that while I believe myself to be pretty smart and capable that I also have some mental health issues that cause me to become overwhelmed easily, plus I am exhausted all the time, not only from being a single mom to two teenagers, but also because I have been ill for the last month with whatever nasty viruses are making their way through my town. I am also going through a foreclosure, trying to figure out where we're going to live after this, and getting my son through the rest of his senior year while preparing for college in the fall. There is a LOT going on all at once in my life, and I can do it. I can always do it. But I need to streamline things and I need to sometimes head towards the path of least resistance.
So confused though, that after all that work we did in that conversation, that none of it was recorded on my account.
What would you all do in this situation?
Things went swimmingly. The woman I spoke with wasn't really sure of how it all worked, so she put me on hold several times to speak with a supervisor and by the end of the conversation, she said that she had e-mailed their bankruptcy department (and confirmed that they received it) with the figure she and I had agreed upon and they would decide if they would go with that or if they wanted to negotiate more. Either way, she said I would hear from them, but I could call on Tuesday or Wednesday of this week to check in.
So, I called this morning, and the woman I spoke with had NO idea what I was talking about. Pulled up my file, it said I called to let them know I was in bankruptcy and that's it. No mention whatsoever about ANY of the negotiating, about lowering the payoff amount, about the email she sent to the bk dept. Nothing. And the woman said "I don't know who you spoke with, but we don't do that." She went on to explain that they never discuss payment terms at ALL with someone in a bankrupty because it could be construed as them trying to collect a debt which would be in violation of the automatic stay. Also, she said that they are not in the practice of lowering any payment or pay off amounts on accounts that aren't charged off. She kept saying that and I kept asking her what it meant and she was very confusing. So I googled it real quick while we were still talking. A charged off account is basically an account where the lender feels they will probably never get their money for one reason or another. In a situation like that, they might negotiate but I am current on my payments. It was deja vu all over again, with the house - house lenders won't even talk to you about anything until you're in default on your mortgage. As long as you're making payments, why would they? It's only when they are at risk of you NOT making payments that they talk to you.
So, I called her bluff a little and told her that if they couldn't lower the payoff amount for me right now, that I was just going to have to surrender the car through the bankruptcy. I asked her if they would negotiate with me then. She said "It depends. It depends on if they think it will be worth their time and money to come get it and auction it off." Meaning, I could possibly surrender it and they might not come and get it, even if I don't make payments? Does that ever happen?
So, I guess I'm just not really sure what to do about the car. Do I file a motion to redeem it? Ugh. So much time and energy. Do I surrender and just keep paying until it's paid off (almost $6,000) or surrender it, not make payments and see if they come and take it?
Bear in mind that while I believe myself to be pretty smart and capable that I also have some mental health issues that cause me to become overwhelmed easily, plus I am exhausted all the time, not only from being a single mom to two teenagers, but also because I have been ill for the last month with whatever nasty viruses are making their way through my town. I am also going through a foreclosure, trying to figure out where we're going to live after this, and getting my son through the rest of his senior year while preparing for college in the fall. There is a LOT going on all at once in my life, and I can do it. I can always do it. But I need to streamline things and I need to sometimes head towards the path of least resistance.
So confused though, that after all that work we did in that conversation, that none of it was recorded on my account.
What would you all do in this situation?
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