• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

filed bankruptcy, still making car payments.

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

kolabok

Member
Backstory
Flied bankruptcy less than a year ago.
Kept vehicle and continue to make monthly payments. As bankruptcy goes that was considered not abandoning the original agreement and not included in the debt. For that matter, the timeshare, no one wanted to touch, including the trustee.

If I quit making payments anywhere along the line of the balance remaining due and forfeit my right, I assume something like this could happen, but I'm only guessing at what a likely outcome would look like.

  1. the lender will assume the debt by my forfeiture?
  2. There is nothing they can do to recover the debt since I went thru bankruptcy?
  3. They could garnish my new job and paycheck
4 I could make a reaffirmation for the car and haggle over a pay in full price to end the agreement?

thanks in advance
 


LdiJ

Senior Member
Backstory
Flied bankruptcy less than a year ago.
Kept vehicle and continue to make monthly payments. As bankruptcy goes that was considered not abandoning the original agreement and not included in the debt. For that matter, the timeshare, no one wanted to touch, including the trustee.

If I quit making payments anywhere along the line of the balance remaining due and forfeit my right, I assume something like this could happen, but I'm only guessing at what a likely outcome would look like.

  1. the lender will assume the debt by my forfeiture?
  2. There is nothing they can do to recover the debt since I went thru bankruptcy?
  3. They could garnish my new job and paycheck
4 I could make a reaffirmation for the car and haggle over a pay in full price to end the agreement?

thanks in advance
If you stop paying the car payment they will repo the car since it has a lien against it. The bankruptcy does not take away the lien. However, they cannot repo the car until the bankruptcy is closed/finished.

As long as you keep paying the car payment you will pay off the car within the original loan agreement. You don't have to "haggle". You could also officially reaffirm the car under the same original loan agreement. Again, "haggle" is not necessary.
 

FlyingRon

Senior Member
Now, hold on a minute. First we have to know what sort of bankruptcy this is. In almost all cases you need to discuss what to pay with your attorney rather than making preferred payments to one creditor. If this is a chapter 13 and you are already on a plan to pay these, than you should do so. Again, if something has changed, you need to get to your attorney and have the trustee approve the changes.

Generally, there is a stay on foreclosure ore repo actions during a bankruptcy. This is all the way until discharge for chapter 7 and for the first month or so on chapter 13. Of course, if the chances you'll pay are hopeless, the lender can ask for the stay be lifted.
 

doucar

Junior Member
I could make a reaffirmation for the car and haggle over a pay in full price to end the agreement?

All reaffirmation agreements must be submitted to the court for approval prior to the discharge of a chapter 7 bankruptcy and the terms are all set forth in the agreement, not haggled at the end. There if often a reduction in interest, and that is it.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top