I have a car loan with santander and looking to file chapter 7, do they repossess, or do they allow you to make your monthly payments ? I would like to get a sense of how difficult they are to deal with if a reaffirmation is "not" signed and payments are current and if they will continue to accept payments.
They can not repo the car once you have filed, it is against the law. I have a car loan through Exeter when I filed and I was behind 3 months on payments, well I filed in May and still have car now and as a matter of fact my attorney told me if they want to repo in a Chapter 7 they have to file a motion through the court and that alone takes 30 days. But most will wait until you forfiet the car. They will work toward a reaffirmation which basically means resigning the loan with added or deleted stipulations. Hope this helps Good Luck!!
Sorry I forget to say, my attorney told us if we wanted to keep the car to keep the payments going until the reaffirmation. But keep in mind they do not have to accept any reaffirmation agreements if they choose not to.
Not sure if you still need the response (maybe some one else will?!?) but I had Santander when I filed. I didn't pay during the automatic stay. I had initially chosen to reaffirm but changed my mind before the 341 meeting. A month after my discharge they came and towed the vehicle. When I called to make sure it was them, the lady offered me the chance to keep the car and continue making payments if I paid the payments I missed during the automatic stay. I would have to pay the missed payments within 10 days of the repossession. She said if I had just kept making payments the car wouldn't have been towed. I do know they don't report after a bankruptcy so it won't help your credit.
Depending on your State of residence, you may have multiple options. Bottom line is that most lenders will not repossess the vehicle as long as payments are current. From what I researched last night, I think there are two companies, Ford and Toyota maybe, that will require a reaffirmation of the debt or they will repossess the car. The big benefit of not reaffirming has to do with the right of the creditor to reposess and resell the car then sue you for deficiency. They can do just that if you do not reaffirm and miss payments then lose the car. I reaffirmed mine but now I wish that I had not.
Thank you! I ended up filing chapter 13 and found that Santander removed my 15 months of on time payments from my credit history, can they do this?
I just got a car from carmax on August '13 and santander was my lender. I just filed for bankruptcy Jan '14. I noticed my loan is already gone from my transunion report. So my on time/extra payments are gone. I go to court monday to for the meeting for the creditors. What would be my best option? I want to receive the points for making on time payments. Would it be best to just apply for another car?