Late on personal loans

I am currently 2 months behind on a personal loan with Springleaf financial. I have a total of four personal loans. Three of them are one month behind.

My question is the following: I will retain a lawyer next Friday to start filing chapter 7. I have a lawyer but will be on a payment plan. Now the filing will not happen until the full balance of the lawyer is paid, they give you three months, but my plan is to pay them within a month and a half. I have spoken to Springleaf since I am behind on two payments and gave them my attorney info and that if they had any questions to feel free to contact her. Can the loan companies still set a judgement against me and repossess my tv that I had listed on my paperwork even if they know I am on a payment plan and am going through the bankruptcy process? If it takes me a month and a half to finish my payment plan it will put me at a total of 4 months behind with Springleaf and 3 months with the other ones. Can they still sue me knowing that I have an attorney? I am willing to pick up the phone when they call and update them on my case if that would slow down the suing process.

Also my other question is can the loan companies call my references to obtain payment from them? I mean they are not co-signers. Your help would be greatly appreciated.

Reply from

These are all good questions for your attorney. Generally, though, once you file you are protected by the automatic stay. That means the calls (including calls to your relatives) must stop. Your attorney will also be able to help you understand what property you get to keep once you file.

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Aug 16, 2015
Late on personal loans
by: Anonymous

I live in NC and I'm also late on my personal loan payments (3 mos) on a personal loan I took out with a local loan company. I've already had 2 free consultations with 2 different bankruptcy lawyers, both of whom seemed more interested in getting an upfront fee to take my case than in actually helping me.

I've now been served with a summons to appear in court for a judgement. I'm 65, receiving SS and have a part-time job that provides a little additional monthly income, but I have no real valuable property, except for 1 vehicle, which currently has a lien against it as collateral for a loan I took out with my credit union.

Can the creditor pay the loan balance owed to the credit union, thereby in effect obtaining the vehicle property?

Reply from

It is very unlikely that they would want to pursue the equity in your vehicle, even if they can. (And whether they can in part depends on what property is exempt from creditors.) This article explains why:
Can a debt collector repossess my car?

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