I have filed for a Chapter 13 bankruptcy, and I have a case number. I had an auto loan with Capital One and I was 1 and one half payments behind when I filed. They turned my loan over to a bankruptcy collection agency. What does this mean? My plan is supposed to be set up so that my car payment is included each month. Is it possible that I will lose my car? Or can they not repo my car since I have a Chap 13 case pending? Thank you.
You are protected by the Chapter 13 bankruptcy from repo unless and until the creditor files a motion to lift the automatic stay. If the car is still in your possession and your plan proposes to repay the loan as required by the code, you will be able to keep your car so long as you make your Chapter 13 payments.
My response to this question does not create an attorney-client relationship and does not constitute legal advice. The information is provided as a courtesy only. This format of written question and answer is too informal and lacks sufficient detail. It is rarely never possible to give quality legal advice without a full set of facts and the opportunity to have a dialog where questions are asked and answered. Moreover, posters on the internet should be aware that confidentiality is not guaranteed online. I am licensed to practice law in Wisconsin.
I agree that so long as your auto loan is included in the plan and payments are being made then the creditor cannot repossess your car. Creditors oftentimes have bankruptcy departments that handle the account while your case is in bankruptcy, however we would need to know more to be sure. Based on what you have posted, you should be ok.
As long as you listed the debt and the plan contemplates repayment of the secured value you should not lose the vehicle. Discuss with your lawyer.
The fact that your loan is now in the bankruptcy department of the lender means that the loan is being monitored by people who have received some specialized bankruptcy training. It means nothing more than that. Hope this perspective helps!
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