J. Dinkins G. Grange is an attorney in Northeast Florida, helping his clients find solutions to their financial problems, which in some cases includes bankruptcy in some cases. This Blog contains general bankruptcy relevant information. His practice includes representing clients in various areas of civil litigation including Fair Debt Collection Practices Act, Chapter 7 and Chapter 13 bankruptcies, foreclosure defense and probate.
Sunday, March 18, 2012
P is for Payment: Behind On Car Payments After Filing Chapter 7
Yes, "P" is for Payment. So, you just filed a Chapter 7 bankruptcy,
and at the time of filing, you were current on your payments on your
vehicle. You intend to reaffirm (keep) the vehicle. But now, after
filing and before your discharge, you have become late on a payment.
How will this effect you?
First, when presented with this
question, the number one concern usually centers around whether the
creditor can repossess the vehicle. The short answer is “That
Depends”. When you file bankruptcy, and automatic stay is put in
place preventing any collection efforts until one of several things
First, if the case is dismissed, the
automatic stay is lifted; that is to say, the creditor can commence,
or continue, collection efforts including the repossession of the
vehicle. If your case is dismissed, you are no longer in bankruptcy,
therefore, you are no longer afforded the protections of bankruptcy.
Depending you the circumstances surrounding your dismissal, you may
have to wait before you can refile.
Secondly, you are suppose to perform
your intention (reaffirm, surrender, or redeem) within 30 days after
the date set for your meeting of creditors, also known as the 341
meeting. If you fail to perform your stated intention, then the
creditor can go after the asset. However, from a practical
standpoint, the creditor may wish to seek permission from the court
before going after the vehicle.
If your initial intention regarding the
vehicle is to reaffirm it, you may want to consider if this is really
in your best interest. If the payments get behind after you have
signed and filed the statement of intentions, and you have been
granted a discharge, the creditor can repossess the vehicle, and go
after you for a deficiency balance the same as if you had not filed
bankruptcy. The difference is, it may be a while before bankruptcy
can help you again.
--- Other notable sites for "P is for ...":
Advice New York Bankruptcy Lawyer, Jay S.