Expert: Mark J. Markus- California Bankruptcy Attorney - 7/27/2006

Question
Thank you for the response.  They vehicles were provided for in the plan and very clearly put into the plan structure. We have in our court papers and documents fromt he attorney who is to receive payment and who is discharged.  I am unclear if the trustee has not sent payment, but one thing I did notice is on the letter in which they ask for us to resend copies of the statement last received, they have the name of the credit union incorrect (by only 1 letter).  Could it be that they are looking for the incorrect creditor and still making the appropriate payments to the correct creditor?  The attorney says that sometimes "glitches" like this happen in Chapter 13.  Some judges rule that the vehicles can be repossed immediately, others say they have to wait.  I still don't understand why repossession is in the equation at all if all the documents are correct and the judge approved everything and we have made all timely payments.  Please respond with your opinion or knowledge
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Followup To

Question -
Our chapter 13 was accepted and ruled on in 2005.  We have made every payment on time.  I recently received notice that the credit union in which our cars were financed did not file by the Feb. 3rd, 2006 deadline.  The trustee just notified our attorney and the attorney is now asking us for the last statement we received.  Upon speaking with the attorney regarding what this meant in terms of the BK, he stipulated that since the creditor did not file, there is a chance the vehicles may be repossed.  My husband and I are unclear as to why this may happen.  The BK was set up, approved and we have made all timely payments.  Can repossession really occur since the creditor boycotted the BK?

Answer -
I don't know what it is that the credit union failed to file, but if you made the monthly payments to them as provided for in your Plan, then they cannot repossess.  If what you're saying is that the Trustee didn't make the payments to them because they weren't provided for in the plan, that is something you'll have to deal with your attorney on because it may depend on local practice and customs in your jurisdiction.   They can't do anything without court approval though.

Answer
If the payments have not been received by the creditor, then they have the right to seek court approval to proceed with any repossession rights they have under your State's laws.  Without reviewing all the paperwork filed in your case and knowing your court's local rules and practice, I can't give you more information than that.