Do I put “buy here – pay here” vehicle loans in my bankruptcy ?

Posted on September 16, 2017. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts | Tags: , |

Yes, car lots that finance the purchase of car are very common and do have to be listed as a creditor in your bankruptcy and the vehicle you purchased does have to be listed as an asset. If you have such a vehicle loan, be sure and tell your bankruptcy attorney about the loan. If you are current on the loan, and you are filing Chapter 7 bankruptcy, you can very likely reaffirm the loan and keep paying the car lot and keep the vehicle. You also have the option of surrendering the vehicle back to the car lot and owing them nothing in a Chapter 7 bankruptcy. If you are filing Chapter 13 bankruptcy, you can surrender the vehicle, keep the vehicle and keep paying for it outside the Chapter 13 plan, or put the debt on the vehicle inside the plan and keep the vehicle. The details, paperwork and title of the purchase and the vehicle need to be provided to your bankruptcy attorney immediately. There are issues that could arise that your attorney can check that could affect your ability to keep the vehicle if you are filing Chapter 7, even if you wanted to keep paying for it and are current on the payments.

So, yes, the debt to the car lot MUST be listed in any type of bankruptcy that you file and your attorney can guide you as to the best option for you in keeping the vehicle or letting it go.

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Do all creditors have to be listed on bankruptcy schedules ?

Posted on October 11, 2013. Filed under: Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Consumer Alerts, Consumer Bankruptcy Attorney | Tags: , , , , , |

yes

Yes. All of the debts have to be scheduled, with the name and address of the creditors. This is so that they can receive notice of the bankruptcy, and get their fair share of any money that is paid to creditors. Sometimes debtors think that they should omit a creditor because they want to continue to pay the debt. This would violate the law, and it is unnecessary, because a debtor can always choose to pay a debt voluntarily, even though the debt has been discharged and there is no legal obligation to make payment. However, creditors are usually prohibited from taking any action to collect discharged debts.

photo credit: It’sGreg via photopin cc

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What happens if I miss some payments to the Chapter 13 Trustee in my Bankruptcy ?

Posted on July 16, 2013. Filed under: Chapter 13 Bankruptcy, Consumer Alerts | Tags: , , , , , |

For example, what if I have some emergency?

It is important for you not to miss any payments to the Trustee. When you file your Chapter 13, you get the benefit of prohibiting your creditors from taking any action against you. In exchange for that relief, you must complete your obligations under the plan. One of those obligations is making your payments to the Trustee on time as required. If you miss payments, the Trustee cannot pay your creditors as called for by your plan and the Trustee will be obligated to file papers with the Bankruptcy Court asking that your case be dismissed. If your case is dismissed, your creditors will be notified and they may resume collection against you.

If there is a serious change in your circumstances, you should notify your attorney as soon as possible, even before you miss a payment. Your attorney can reevaluate your financial situation and, if appropriate, modify your plan to reflect the changed circumstances. This process can take several weeks, so be sure to contact your attorney immediately if you foresee any problems with your payments.

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