CH13 question (re: non-filing spouse & vehicle)

[LLMT]

Hi! I am wondering if anyone can help me out here...

My DH completed his CH13 and received his discharge paperwork. Our car was listed on the BK and was paid at 100% (no cram down). We were both on the vehicle loan but I was not included in the bankruptcy. I just received a letter from the loan company saying:

"Due Date of Oldest Unpaid Payment: 8/2/14  

Amount Due: $2245.53

Unless we can agree on a payment arrangement by the start of business on August 13, 2014, we will charge-off your entire balance and report our action to the appropriate credit bureaus."

The last payment made by the trustee was in April 2014. When we received his discharge paperwork it states: "All of the mortgage and other secured debts provided for by the Plan are hereby found to be cured of any and all monetary defaults as of the payment date for whcih the Trustee last made a distribution, and no additonal interest, late fees or penalties may be assessed for time periods or payments due prior to that date."

Additionally, we had extra money available at the end of our plan and a small percentage was paid to unsecured debt (there was very little...we filed the CH13 to protect our home during the fiasco) and we were refunded a portion. So I am not sure why claim wouldn't have been made at that time if there were additional monies owed?

I am not sure if this legit at all since I was not protected by the BK? But if the vehicle was paid at 100% and all defaults are cured doesn't that apply to the entire loan, not just the individual?

Thanks for any insight!

[Anonymous]

Depending on how your local district plan and discharge order read, the bank may be in violation of the discharge order.  Some Chapter 13 plans contain verbiage stating the amount to be paid to the car lender controls as the correct balance, others state that the proof of claim filed by the lender controls.  In either case, if the discharge order contains verbiage stating that the claim was paid in full, then that would mean it's paid, regardless of what the lender believes.  The verbiage you posted would read to me more to state that there is no arrears balance that existed prior to filing.  I don't read it as necessarly meaning that if the balance paid through the plan was less than the actual balance owed on the date of filing, that it's cleared.  A local attorney who prectices in your district would have more info on how your local discharge order is typically interpreted and enforced.

I would contact your bankruptcy attorney about it immediately and if they are not able to help you timely, I would then contact other local attorneys.  If it is a violation of the discharge injunction, then a bankrutpcy attorney can resolve the matter through the bankrutpcy court and the creditor would normally have to pay for the attorney's fees and costs.

Hope that helps.