Expert: Terry Leeders - 12/2/2007

Question
First I want to say thank you in advance, I think this site is wonderful and very helpful. Okay my question is. I filed a chapter 13 in 03 for credit cards only.  Separated from husband and credit card bill were draining me with 4 children.  My mortgage and car loan were up to date and these payments I continued to make to the companies.  Due to medical problems and unforeseen problems with my house I have gotton behind on my car payments.  I have been paying something every month but not the required full monthly payment.  I plan to get this caught up in February with my tax return.  I have now received a letter from my car loan company's attorney.  I really don't understand the letter, could you give me any idea.  Can I save my vehicle?  My problems have been resolved and I can make regular payments but there's still the outstanding balance.  Again thank you.

Answer
Since the car is being paid outside of the case, you do need to make sure you stay current, or work with the lender to get current.  Any modification to your loan should be in writing.  Technically, you still have bankruptcy protection, but if you fall behind, they may ask the court to modify the automatic stay to pursue the vehicle.