Can I skip a car payment?

Discussion in 'Bankruptcy' started by JunkMail99, Aug 15, 2003.

  1. JunkMail99

    JunkMail99 Guest

    I am in the process of scrounging up attorney fees and the filing fee for a
    Chapter 7 (California). My car loan is with Mitsubishi Motor Credit
    (RIDICULOUSLY upside down). My payment was due on 8/10/03 and I thought I
    would be able to send it today. However, after balancing, I see that I would
    have a grand total of only $3.77 left for food and gasoline for the next two
    weeks. A payday loan won't help because I won't be able to pay it back in
    the required 14 days.

    What do you think would happen if I just skip this payment and start paying
    again with my September payment which is due on the 10th? I can't imagine
    they would initiate a repossession over one missed payment. I think they
    would end up with A LOT of cars if they did that. I'm running behind because
    in the past three months I've taken approximately $1,000 out of my budget
    for movers, apartment rental deposit and the attorney's initial retainer
    fee. I won't have these fees next month so I am sure I will be able to make
    the payment in September and subsequent months. I am also working on
    obtaining part-time employment to make up the difference.

    My attorney says I shouldn't worry about it because Mitsubishi doesn't want
    my car. However, it would be just MY luck that I would be the one person
    they wanted to make an example of by repossessing right away. I have
    considered giving it back, but I don't believe I could get another reliable
    vehicle with no cash and no credit.

    I need a second opinion. Should I be worried about Mitsubishi?
     
    JunkMail99, Aug 15, 2003
    #1
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  2. JunkMail99

    Matt Guest

    "Dave" <> wrote in message news:<rO8%a.12$>...
    > >
    > > What do you think would happen if I just skip this payment and start

    > paying
    > > again with my September payment which is due on the 10th?

    >
    >
    > If your car loan is current and your payment was just due on 8-10, you won't
    > even be past 30 late until 9-10. other than incurring a late fee, there
    > should not be any other consequences unless you can't catch up in later
    > months. You might want to call the lender and schedule a payment as soon as
    > you can and not wait until that last week
    >
    > good luck
    > dave



    Some lenders will let you do an extension, where you can skip a month
    and they will tack that payment to the end of your loan note. They
    will usually do this if you have a good record with them. As much as I
    hate payday loans they will usually let you extend the loan longer
    than the 14 days, if you call them in time. It is just a bad cycle to
    get into if you don't think you can pay it back soon. As long as you
    can pay car payment by 9/9 it will not be considered 30 days past due.
    Nothing wrong with being a little late for the next few months, just
    try to get it paid within 30 days late. I have been there plenty of
    times, so hang in there it will get better.
     
    Matt, Aug 16, 2003
    #2
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  3. JunkMail99

    Todd Guest

    Just call the lender and say that you can't make the payment this
    month and what can you do. They will probably just extend your loan
    or allow you to make two payments the next month. Usually they don't
    have a problem doing that. It can go on your credit report for the
    time being, but eventually it will not be on there as soon as you are
    current again.
     
    Todd, Aug 16, 2003
    #3
  4. JunkMail99

    JunkMail99 Guest

    I just called Mitsubishi. They no longer do deferments, so I can't skip a
    payment and add it to the end of the term. The CSR seemed unconcerned that I
    was already 8 days late. She said I just had to try my best to make the
    payment. She said I could call back after the 30-day mark to see what my
    late fee will be since everyone's is different.

    Angie

    "JunkMail99" <> wrote in message
    news:U28%a.12$...
    > I am in the process of scrounging up attorney fees and the filing fee for

    a
    > Chapter 7 (California). My car loan is with Mitsubishi Motor Credit
    > (RIDICULOUSLY upside down). My payment was due on 8/10/03 and I thought I
    > would be able to send it today. However, after balancing, I see that I

    would
    > have a grand total of only $3.77 left for food and gasoline for the next

    two
    > weeks. A payday loan won't help because I won't be able to pay it back in
    > the required 14 days.
    >
    > What do you think would happen if I just skip this payment and start

    paying
    > again with my September payment which is due on the 10th? I can't imagine
    > they would initiate a repossession over one missed payment. I think they
    > would end up with A LOT of cars if they did that. I'm running behind

    because
    > in the past three months I've taken approximately $1,000 out of my budget
    > for movers, apartment rental deposit and the attorney's initial retainer
    > fee. I won't have these fees next month so I am sure I will be able to

    make
    > the payment in September and subsequent months. I am also working on
    > obtaining part-time employment to make up the difference.
    >
    > My attorney says I shouldn't worry about it because Mitsubishi doesn't

    want
    > my car. However, it would be just MY luck that I would be the one person
    > they wanted to make an example of by repossessing right away. I have
    > considered giving it back, but I don't believe I could get another

    reliable
    > vehicle with no cash and no credit.
    >
    > I need a second opinion. Should I be worried about Mitsubishi?
    >
    >
    >
     
    JunkMail99, Aug 18, 2003
    #4
  5. JunkMail99

    PWB Guest

    For what it's worth...

    Don't allow your auto loan to go 30 days past due. Send the payment before
    the loan reaches its 30th day past due, even if you have to use Western
    Union QuickCash to express-pay on the 29th day past due. A *reported*
    30-past-due status on an auto loan tradeline is one of the most damning
    black marks, credit-wise, other than being reported past due on a mortgage
    (or, of course, in foreclosure, or bankruptcy). IMHO. Note, I am not a
    lawyer, but my personal experience has been that, as long as your auto and
    mortgage/rental tradelines are clean, even if you have a BK on your record
    and a number of derogatories related to credit card debt, lenders are still
    willing, albeit grudgingly, to deal with you. Default on an auto loan (or
    mortgage), however, and you'll find that creditors will want to have nothing
    to do with you... at all.

    PWB

    "JunkMail99" <> wrote in message
    news:k_50b.8522$...
    > I just called Mitsubishi. They no longer do deferments, so I can't skip a
    > payment and add it to the end of the term. The CSR seemed unconcerned that

    I
    > was already 8 days late. She said I just had to try my best to make the
    > payment. She said I could call back after the 30-day mark to see what my
    > late fee will be since everyone's is different.
    >
    > Angie
    >
    > "JunkMail99" <> wrote in message
    > news:U28%a.12$...
    > > I am in the process of scrounging up attorney fees and the filing fee

    for
    > a
    > > Chapter 7 (California). My car loan is with Mitsubishi Motor Credit
    > > (RIDICULOUSLY upside down). My payment was due on 8/10/03 and I thought

    I
    > > would be able to send it today. However, after balancing, I see that I

    > would
    > > have a grand total of only $3.77 left for food and gasoline for the next

    > two
    > > weeks. A payday loan won't help because I won't be able to pay it back

    in
    > > the required 14 days.
    > >
    > > What do you think would happen if I just skip this payment and start

    > paying
    > > again with my September payment which is due on the 10th? I can't

    imagine
    > > they would initiate a repossession over one missed payment. I think they
    > > would end up with A LOT of cars if they did that. I'm running behind

    > because
    > > in the past three months I've taken approximately $1,000 out of my

    budget
    > > for movers, apartment rental deposit and the attorney's initial retainer
    > > fee. I won't have these fees next month so I am sure I will be able to

    > make
    > > the payment in September and subsequent months. I am also working on
    > > obtaining part-time employment to make up the difference.
    > >
    > > My attorney says I shouldn't worry about it because Mitsubishi doesn't

    > want
    > > my car. However, it would be just MY luck that I would be the one person
    > > they wanted to make an example of by repossessing right away. I have
    > > considered giving it back, but I don't believe I could get another

    > reliable
    > > vehicle with no cash and no credit.
    > >
    > > I need a second opinion. Should I be worried about Mitsubishi?
    > >
    > >
    > >

    >
    >
     
    PWB, Aug 18, 2003
    #5
  6. JunkMail99

    Dan Guest

    You really should read your contract for guidance. Half of the CSR's in
    these places are inept and the other half plain stupid.
    "JunkMail99" <> wrote in message
    news:k_50b.8522$...
    > I just called Mitsubishi. They no longer do deferments, so I can't skip a
    > payment and add it to the end of the term. The CSR seemed unconcerned that

    I
    > was already 8 days late. She said I just had to try my best to make the
    > payment. She said I could call back after the 30-day mark to see what my
    > late fee will be since everyone's is different.
    >
    > Angie
    >
    > "JunkMail99" <> wrote in message
    > news:U28%a.12$...
    > > I am in the process of scrounging up attorney fees and the filing fee

    for
    > a
    > > Chapter 7 (California). My car loan is with Mitsubishi Motor Credit
    > > (RIDICULOUSLY upside down). My payment was due on 8/10/03 and I thought

    I
    > > would be able to send it today. However, after balancing, I see that I

    > would
    > > have a grand total of only $3.77 left for food and gasoline for the next

    > two
    > > weeks. A payday loan won't help because I won't be able to pay it back

    in
    > > the required 14 days.
    > >
    > > What do you think would happen if I just skip this payment and start

    > paying
    > > again with my September payment which is due on the 10th? I can't

    imagine
    > > they would initiate a repossession over one missed payment. I think they
    > > would end up with A LOT of cars if they did that. I'm running behind

    > because
    > > in the past three months I've taken approximately $1,000 out of my

    budget
    > > for movers, apartment rental deposit and the attorney's initial retainer
    > > fee. I won't have these fees next month so I am sure I will be able to

    > make
    > > the payment in September and subsequent months. I am also working on
    > > obtaining part-time employment to make up the difference.
    > >
    > > My attorney says I shouldn't worry about it because Mitsubishi doesn't

    > want
    > > my car. However, it would be just MY luck that I would be the one person
    > > they wanted to make an example of by repossessing right away. I have
    > > considered giving it back, but I don't believe I could get another

    > reliable
    > > vehicle with no cash and no credit.
    > >
    > > I need a second opinion. Should I be worried about Mitsubishi?
    > >
    > >
    > >

    >
    >
     
    Dan, Aug 19, 2003
    #6
  7. JunkMail99

    GARY Guest

    GARY, Aug 26, 2003
    #7
  8. JunkMail99

    Grandma Guest

    It wouldn't hurt to call Mitsubishi credit dept. again - try for a
    minimum of 2 month deferment. If they won't work with you, then
    you'll have to decide best avenue. . . food for next 2 weeks or
    possible neg on credit report? Next, when you have your attorney's
    assistance, right off the bat ask if you can get your car value
    modified thru the court. I don't know if this option is available in
    CH 7, I know it is in Ch13. You said you are "upside down" on it so
    this would enable you to pay only what it is worth, if there is proof
    for your claimed value to show less than what is owing. In CH13, you
    have to sucessfully get thru the entire plan to pay the new value, the
    "excess" is discharged. Other members here are more up on what that
    might do to the credit report in that scenario.
    > > >
     
    Grandma, Aug 28, 2003
    #8
  9. JunkMail99

    Brett Weiss Guest

    You cannot do a cram down in a Chapter 7, only a redemption (lump
    sum payment of the value of the car).

    --
    Brett

    *****************************************************************
    * Personal Injury/Malpractice Bankruptcy *
    * *
    * BRETT WEISS, P.C. *
    * Attorneys at Law *
    * Maryland, D.C. and Federal Bars *
    * *
    * http://www.erols.com/lawyer *
    * *
    * Small Business Estates & Estate Planning *
    *****************************************************************

    The Small Print: This response is for discussion purposes only.
    It isn't meant to be legal advice and you shouldn't treat it as
    such. If you want legal advice, speak with a local lawyer
    familiar with your state's laws who can review *all* of the facts
    and the law applicable to your situation.
    *****************************************************************


    "Grandma" <> wrote in message
    news:...
    > It wouldn't hurt to call Mitsubishi credit dept. again - try

    for a
    > minimum of 2 month deferment. If they won't work with you,

    then
    > you'll have to decide best avenue. . . food for next 2 weeks or
    > possible neg on credit report? Next, when you have your

    attorney's
    > assistance, right off the bat ask if you can get your car value
    > modified thru the court. I don't know if this option is

    available in
    > CH 7, I know it is in Ch13. You said you are "upside down" on

    it so
    > this would enable you to pay only what it is worth, if there is

    proof
    > for your claimed value to show less than what is owing. In

    CH13, you
    > have to sucessfully get thru the entire plan to pay the new

    value, the
    > "excess" is discharged. Other members here are more up on what

    that
    > might do to the credit report in that scenario.
    > > > >
     
    Brett Weiss, Aug 29, 2003
    #9
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