File Chapter 7 today. Car question. Please help.

danibaby89 · ‎06-27-2014

I finally took the plunge and filed my chapter 7 today. Included was my 2008 Kia Sedona. My attorney has it on the paperwork that I will continue making payments.

Right now I am three months behind on payments. My question is are they going to come and get the van now or did filing buy me some time? Should I make a payment? I do not want to keep the van after discharge but I was hoping that I could keep driving it until then. Should I maybe call the finance company and explain? Please help this is my first time and I am so torn.

Thank you

BK Chap 7 filed 6/27/14
341 Meeting 7/25/14
Discharged 9/30/14
Starting Score: 496
Current Score: 509 (Equifax)578 (Experian)
Goal Score: 700 ALL

StartingOver10 · ‎06-27-2014

@danibaby89 wrote:
I finally took the plunge and filed my chapter 7 today. Included was my 2008 Kia Sedona. My attorney has it on the paperwork that I will continue making payments.
Right now I am three months behind on payments. My question is are they going to come and get the van now or did filing buy me some time? Should I make a payment? I do not want to keep the van after discharge but I was hoping that I could keep driving it until then. Should I maybe call the finance company and explain? Please help this is my first time and I am so torn.

Thank you

Do NOT call the finance company and explain anything. You have filed BK. Let your attorney do his job. If you don't want to keep the Kia, then don't make payments on it. If you want to keep it just while the Bk is pending, then make payments on it. As long as you don't reaffirm the debt you won't be reponsible for repayment after your bk discharge.

Once the bk paperwork is filed an automatic stay is put on the creditor from collecting debt from you - including the van. The creditor will have to go to court to get the automatic stay lifted. Check with your attorney to see how long you have until the stay is lifted.

danibaby89 · ‎06-27-2014

Great advice. My attorney never mentioned anything about an automatic stay. He just said they could come get the van today or tomorrow. I will have to call on Monday to find out. Right now Im hiding my van because I'm not ready to give it up yet.

BK Chap 7 filed 6/27/14
341 Meeting 7/25/14
Discharged 9/30/14
Starting Score: 496
Current Score: 509 (Equifax)578 (Experian)
Goal Score: 700 ALL

ezdriver · ‎06-28-2014

@danibaby89 wrote:
Great advice. My attorney never mentioned anything about an automatic stay. He just said they could come get the van today or tomorrow. I will have to call on Monday to find out. Right now Im hiding my van because I'm not ready to give it up yet.

That is generally true but the creditor has to file some paperwork with the trustee before they can take the vehicle. Technically, the trustee decides if you abandon the asset or keep/sell it to pay creditors. Making a couple of payments on the oan won't prevent the vehicle from being taken by the creditor. Just make alternative arrangements for transportation asap.

StartingOver10 · ‎06-29-2014

^^^^Agree with EZ here...you don't have to hide it. Make your arrangements for alternate transportation. Making payments on it is throwing away money (now that I think about it) especially if you are giving up the van.