Expert: Terry Leeders - 11/28/2008

Question
My wife and her dad so-signed my wife's car for financing payments.  My wife
has made every payment and on time...her dad was just a co-signer because
he was in the car business at the time.  Her dad filed bankruptcy a few
months ago and now Chrysler Financial will not allow us to pay our bills
online anymore.  My wife explained that it did not make sense to limit our
means of payment when we had nothing to do with the bankruptcy and have
never been late.  She asked to please give us back our means of payment but
they said no...we would have to either call to make payments (there is a fee
for that of course) or mail in the payment.  They told my wife that this is a
bankruptcy law.  

I've heard horror stories about their mail in process with many people getting
checks lost.  Is there a way to get online payments reinstated?  Is this even
legal?  Their website says that all people can use their online payment
system.  There is no mention of limitations.

Thank you.

Answer
If a debt is not reaffirmed during a bankruptcy, the debt is discharged thru the bankruptcy.  Now, each creditor has their own payment terms, for cases where there may have been a cosigner.  The creditor cannot collect during a case from either the debtor or the cosigner, so some companies take it to far and cut off the extra payment options.  So, unfortunately, if you want to keep the car, you will just have to mail in payments.