car loan

I'm in chap.13, but my car loan has been settled separate now the account is closed. If I keep paying my car loan, will the car still be repossed?

Comments for car loan

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Jan 05, 2012
car loan sold to collection agency

I am not totally clear about the facts of your situation. Are you saying that you filed for bankruptcy, but prior to that you settled your car loan? If you did settle the loan, then the lender agreed to let you pay it off for less than the full amount that you owed on it. Therefore, assuming you paid the full settlement amount you no longer owe the lender any money and the car is yours. If that is the case, I don't understand why you would be concerned about a repossession. If you did not pay the full settlement amount however, then I expect that you would be at risk for a repossession, even if you continue to make your car payments because you defaulted on the settlement agreement. I assume you got all of the terms of the agreement in writing. Have you read it to see what it says?

By the way, normally in a bankruptcy, all efforts to collect debts, including a repossession, are halted because of something called the automatic stay. However, from what you have written, it sounds like your car loan was not included in your bankruptcy. Therefore, the automatic stay does not apply to it.

I am not an attorney and since I assume a bankruptcy attorney helped you file for Chapter 13, prepare your reorganization plan and so on, I recommend that you discuss your situation with the attorney. I am sure that once you provide the attorney with all of the facts of your situation, he or she will be able to answer your question. If you don't have a bankruptcy attorney, I would consult with one right away, bankruptcy attorney.

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