Fifth Third threatens Car Repo 4 years after Bankruptcy final
Date: Sat, 08/21/2010 - 09:55
We had a Chapter 13 that converted to a Chapter 7 that was discharged nearly 4 years ago. We had a vehicle financed by Fifth Third bank invoved, and wanted to keep the car, keep making payments, and move on with our life. During the original Ch 13, our car payments went from $389 down to $256 per month. When we converted to a Ch 7, the payments were not changed, we filed a reaffirmation agreement, we were under the impression that 5/3 was notified, signed off on it, because nothing ever changed, and we kept paying the $256 per month ever since.
a Month ago, my now ex-husband get a call from 5/3 loan dept saying the loan had "matured" and was now in "default" because there is still a balance of $7800 showing that is owed. They recognize that no payments have been late or missed, but the balance is still outstanding and due in full or there will be late fees, penalties, etc.
While we are having our original bankruptcy attorney going over this with a fine toothed comb, it seems as if 5/3 is now changing the terms they signed off on and agreed to, which was to let us continue paying $256 per month until paid in full, and that the original contract would have been voided and THIS agreement put in its place. Would this NOT throw the "loan maturity" date out the window for the original loan, since they modified the terms of the original loan?
My ex was called today by Regional Adjustment Bureau out of memphis, Tn to inform him that 5/3 has turned the debt over to their agency for collection and now 5/3 won't even speak to him.
WHO is in the right? Can they come and take the car even if we are still paying for it? Is there a chance the collection agency will work with us? The car is only worth less than half of the balance they say we owe, but we want to pay and keep it..
ANY THOUGHTS?
the thing i see is the mix up happend when the bk changed from a
the thing i see is the mix up happend when the bk changed from a 13 to a 7. the reaffirmation agreement they signed was for the 13. so when it changed to a 7 maybe that could have voided the agreement. i could be wrong, i'm just trying to make sense of it. the question i have was there any contact between you and the finance company after the bk was discharged? did they continue to send you statements? did you ever need to call them for anything or did they ever call you? the only reason i ask is i know once you get your case # for the bk the finance company cant contact you and wont send you statments. but i also know in a chapter 7 once it is discharged the finance company can go about there buisness, sending you statements, calling you if its past due, reposessing etc...i would think if they expected you to keep paying the 389 and you kept paying the 256 it would show past due and especially after 4 year period and they would have tried to contact you at some point. its really hard to say, especially since i'm not an expert. but from what i gather it sounds like there was a mix up or lack of communication somwhere between the time that your bk converted to a ch 7, and the time the loan recently matured. possibly they gave you guys wrong information. i hope atleast some of this helps you out. please let us know what your attorney says about the situation.
Yeah, the whole thing is very strange, and we definately thought
Yeah, the whole thing is very strange, and we definately thought that, if there were some issue with us paying $256 and they were expecting $389 per month, after THIS long, we would have heard from them WAYYYY before now. One person from 5/3 even told my ex that the reaffirmation agreement was only good for the life of the loan, and was no longer in effect when the loan matured. Another 5/3 representative told him that they "have no record" of any reaffirmation agreement, yet, THEY were the ones who signed of on changing our monthly payments and let us keep the car! 5/3 refuses flat out to even speak to my ex, they turned it over to a collection agency, who now is harassing him day and night, and all they keep telling him is that the car is up for possible repo and there is a $7800 balance due. He asked the collection agency rep that, if after the paperwork has been reviewed and it is determined that we owe the money, can a payment plan be made. The collection agency rep said that it would be up to her boss, and he was not in today, so my ex would have to call back. We just thought this nightmare was behind us years ago....
i would get your BK attorney involved as they should have gone o
i would get your BK attorney involved as they should have gone over this before it actually happened.i know converting a 13 to a 7 is tricky,but your lawyer should have made sure everything was covered.also was there anything in this paper with them agreeing to the reduced payment of the loan maturing,and what that meant.if not i would get your BK laywer on it asap.
yeah its definetly strange. sounds like the best bet, if at all
yeah its definetly strange. sounds like the best bet, if at all possible, is to try and work out a settlement with them? possibly see if he is able to get it refinaced through a diffrent lender. or maybe try and trade the vehicle in. that would atleast get the collection agency off his back. they dont make it very clear, and unless you are knowlegable about it, when you get a simple intrest loan it works off of a daily intrest rate. so every single day the account goes past due you are charged a per diem. it sounds like to me they agreed to let you make the payments of 256 but didnt advise you that they would still charge you the regular intrest and per diem on the original contract, which resulted in having a 7k + balloon payment once the loan matured. being in the buisness for the last 5 years i am curious as to what your attorney tells you about the situation.
My employer( who is a physician) received a phone call @ his hom
My employer( who is a physician) received a phone call @ his home residence from a company named Regional Adjustment Bureau this woman identified herself as Lynn Matthews after I received the info I contacted this company and was informed there is no information about me in the system this took well over 6 attempts and being hung up on multiple times. What can I do? This can cost me my job. Who can I contact to make sure this never happens again
Send them a cease and desist contact letter, you can find a samp
Send them a cease and desist contact letter, you can find a sample in the DIY section of this forum.
