QUESTION
Do I continue to pay car payments after filing for Chapter 13 bankruptcy while waiting for the hearing?
Asked on Aug 16th, 2014 on Bankruptcy - Idaho
More details to this question:
We are filing this week for chapter 13 bankruptcy. We are current on our cars, but going to let them go to get a fresh start. My question is, on the first do I pay them? We have two of them, and I don't want them to come get them once we file. Do we turn them in after going to court in a couple months or do we turn them in after filing for bankruptcy this week? We need them until we can pick up a relatives car that we are getting of free, just not getting it until the very end of September. We are just very confused and didn't get a call back from our attorney on Friday at the end of the day so we are stressing a little on how to make everything flow properly.
8 ANSWERS
You really should consult with your attorney. Cars are suppose to be returned within forty five days. There may be a little leeway here, but your attorney is the best suited to answer these questions.
Answered on Aug 19th, 2014 at 7:31 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Wait for your attorney to answer your question. If you think you are stressed out now, wait until you receive conflicting answers over the internet from attorneys who do not know the details.
Answered on Aug 19th, 2014 at 7:31 PM
By this time your attorney should have answered your questions. Once you have retained a lawyer, most ethical lawyers will not give you advice which may contradict the other lawyer. The time to ask for second opinions is before you have retained a lawyer.
Answered on Aug 19th, 2014 at 7:31 PM
2 Awards
If you are surrendering the cars don't make payments.
Answered on Aug 19th, 2014 at 7:31 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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NOOOO, don't pay them. Even if you were keeping the cars, the plan takes care of the car loan during the confirmation process. But since you are turning the cars in, this is unsecured debt which will be put in a pot with your other unsecured debt and paid pennies on the dollar, any payment you make will just be money wasted. Or maybe you can get it back, I'm not sure, I've only been a bankruptcy attorney for 25 years and I've never seen anyone who made a totally unnecessary car payment, and I don't know how I'd handle it.
Answered on Aug 19th, 2014 at 7:31 PM
If your plan calls for the surrender of the vehicles, you should stop making the payments. I hope you did not include the expense of making these payments on Schedule J because the fact that you will not have to pay this expense in the future will impact your required plan payments.
Answered on Aug 19th, 2014 at 7:31 PM
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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After you file for bankruptcy relief, you can usually hold on to the car until the car lender asks for it back, which often takes more than a month after filing. Be sure to keep the insurance policy paid while you have possession of the car though. When you file for bankruptcy relief, the first important thing that happens is that the "automatic stay" kicks in. What that does is prevent anyone from taking your property. Of course, they must know about the filing for them to obey the automatic stay. Presumably, the lender on the car was listed as part of the petition; however, sometimes you have to send a notice of the bankruptcy filing directly to the lender to prevent that they "accidentally" repossess your car while the stay protection is in effect.
Answered on Aug 19th, 2014 at 7:31 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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In Idaho car payments are typically included in the Chapter 13, so you would not make car payments after the filing of your bankruptcy. However, sometimes we will exclude a car from payment within the Chapter 13, so this is something you need to visit about with your attorney. If you are surrendering these vehicles, then your Chapter 13 payments will also not go to fund and pay for these vehicles. Another issue is to see whether this is in your best interest, visit with your attorney to make sure.
Answered on Aug 19th, 2014 at 7:30 PM