Loan sold to CA while current when I filed BK
I just got discharged from Chapter 7 BK earlier in Aug. I stayed current on a loan that has a current balance on it of about 4K. It was for a cargo trailer I use for work. HSBC was the OC(orginal creditor) of this loan.
I continued to make my payments during the BK process. This loan was discharged during the BK and I did not reaffirm the loan. So basically right now I am doing a ride thru on this loan.
Yesterday I called HSBC to find out if they would be sending me anymore statements on this loan and they told me the loan had been sold when they found out that I was filing to Bass & Ass. in Tucson, AZ.
So I asked if the payments that I had made during my BK had been credited and she said yes.
So now I really am confused about how to proceed with everything. I had just put another payment in the mail but in the future if I want to make voluntary payments I have to send them to this CA.
How do I know the terms are the same and I will get my title when this is paid for?
I don't want to sign any new papers since this was discharged in the BK and I want an option out if I need it. The trailer is only a few years old but very well used due to the work it is used for.
Any thoughts???
If the loan was discharged, then you are not responsible for it,
If the loan was discharged, then you are not responsible for it, and the finance company should repo the trailer. You should have signed a reaffirmation agreement. That is the normal procedure for any loans you want to keep paying on. I am confused about what the process you went through is.
Submitted by southernapostolic on Thu, 08/27/2009 - 19:53
Was this a secured loan? Or an unsecured loan to purchase the t
Was this a secured loan? Or an unsecured loan to purchase the trailer. Secured loans are generally not sold to CAs and JDB's. If unsecured and they didnt show up in court, you are free and clear.
Well I assume this was secured by the trailer. I talked to them
Well I assume this was secured by the trailer. I talked to them again today and they said they are the legal firm that handles all the loans for HSBC when they go to BK.
I heard from someone else that they went through the exact same thing with HSBC and this same company. Exact same scenero and that they could continue to make voluntary payments or it would be repoed. They didn't want that and I don't either. They were able to settle for about a third and get it in writing and got the lein release and title.
That is what I will try in time when I get some settlement money saved. Even though it was discharged I am doing a ride thru of sorts. I just didn't know for sure on this but learned more about it yesterday and today.
One more point, I need this trailer for work, that is why I have
One more point, I need this trailer for work, that is why I have continued to pay the 119 a month for this.
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If the trailer was a secured loan, you needed to sign a reaffirmation agreement paper that you are agreeing to pay the loan after your bankruptcy.
Either way it sounds like you need to give your attorney a call and get some advice.
A BK discharge wipes out the underlying debt (ie they cannot try
A BK discharge wipes out the underlying debt (ie they cannot try to coerce payment from you...), but a BK does not avoid liens (... and so they can repossess their collateral).
Generally, as others have said, you should have formally re-affirmed the debt before the BK was discharged. As long as you are still paying, they won't likely repo. But since the debt was not reaffirmed, technically they could repo any time they want to. (Yes, even if you're current, because declaring insolvency or a BK is usually stipulated as a default condition in the terms of the security agreement).
Now that the BK is discharged, you might ask them if you can simply refinance the loan (ie open a new loan to pay off the old one). I've done that with some of my customers before, and it gets rid of a lot of the hassles and headaches in having to try to file reaffirmation papers after the case is closed.
