ygboi Posted October 13, 2004 Report Share Posted October 13, 2004 Hi everyone,I very recently filed Chapter 7 and have a quick question. I did one of those "car title loans" from a payday advance place. (I know, very stupid idea) They have a security interest in my car as shown on the title. The loan was for $500 on a 98 Chevy Lumina with 160K mi, fair condition. I paid the interest only ($150/mo) for 3 months, and when all of my extensions were up (3 max), I was to pay off the full $650 to remove the lien. Well, i'm over two months behind on payments, and I'm sure they're ready to repo. With the interest, the total is probably up to the sky. I told my atty. this and he told me to keep up with the payments or surrender the car. I can't repay the loan in a lump sum. I'm too scared to contact the payday place, and they have made no contact attempts to me thus far. I'm sure they've received the notice that I have recently filed. In 7 days, I have my 341 meeting. I have no other assets of value. (except clothes, etc.) My atty is sloooow to answer calls. He doesn't know I'm willing to surrender my car and thinks I'm current on this loan. I hope I don't have to surrender and can work out a payment arrangment. (dad gifted it to me!) What will happen and when? If I have to surrender it since I'm so late, how much time do I have to save up some $$$ for a really cheap car? Do I surrender it at the 341? Will the trustee or loan place take it? Can I buy it back somehow? MY DAD WILL KILL ME.Thanks for listening. Any advice would be greatly and deeply appreciated. Link to comment Share on other sites More sharing options...
LadynRed Posted October 13, 2004 Report Share Posted October 13, 2004 Ask your attorney if there's any way he can have the lien stripped off the car. Since the lien impairs the exemption for your car, it might work, but you have to ask him.You don't do anything at your 341 except answer questions and the loan place can't repo unless they file for a Relief from Stay with the BK court. If they don't file that motion, they can't do squat and you have time to save up the money to pay it. Link to comment Share on other sites More sharing options...
ygboi Posted October 13, 2004 Author Report Share Posted October 13, 2004 Thank you so much for the reply LadynRed! Won't the trustee ask me what I intend to do with my car? Will having this asset, delay the discharge time or am I still looking at approx. 60 days? Link to comment Share on other sites More sharing options...
ygboi Posted October 13, 2004 Author Report Share Posted October 13, 2004 Forgot to ask....You had mentioned "If they don't file that motion, they can't do squat and you have time to save up the money to pay it."Does this mean the interest on the loan stops mounting? Should I contact the loan place at this time? Can the trustee or court setup a payment plan for me, or determine the amount owed, or is it anything the loan company wants? Thank you. Link to comment Share on other sites More sharing options...
LadynRed Posted October 14, 2004 Report Share Posted October 14, 2004 Won't the trustee ask me what I intend to do with my car? Will having this asset, delay the discharge time or am I still looking at approx. 60 days?He might, so you'll have to decide. Your statement of intentions should spell it out anyway. No, having the asset won't delay anything. For a vehicle that old, it should fall within your exemptions.Does this mean the interest on the loan stops mounting? Not necessarily. If your lawyer can get the lien stripped, then the debt will be discharged and it won't matter. Should I contact the loan place at this time?I wouldn't.Can the trustee or court setup a payment plan for me, or determine the amount owed, or is it anything the loan company wants? Its not the Trustee's job to set up payment plans with your creditors for you, that's YOUR job. Nor can the Trustee determing what's owed. The Trustee can only go by what is stated on your forms as to the amount of the debt. Link to comment Share on other sites More sharing options...
ygboi Posted October 15, 2004 Author Report Share Posted October 15, 2004 Thank you so much for your help. I'll be patient and start saving all that I can right now. Link to comment Share on other sites More sharing options...
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