Do I continue to pay car payments after filing for Chapter 13 bankruptcy while waiting for the hearing? 13 Answers as of August 21, 2014

We are filing this week for chapter 13 bankruptcy. We are current on our cars, but going to let them go to get a fresh start. My question is, on the first do I pay them? We have two of them, and I don't want them to come get them once we file. Do we turn them in after going to court in a couple months or do we turn them in after filing for bankruptcy this week? We need them until we can pick up a relatives car that we are getting of free, just not getting it until the very end of September. We are just very confused and didn't get a call back from our attorney on Friday at the end of the day so we are stressing a little on how to make everything flow properly.

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Stephens Gourley & Bywater | David A. Stephens
That depends on what your plan says about paying for the car. Generally you do not pay for cars you are giving up.
Answer Applies to: Nevada
Replied: 8/21/2014
Idaho Bankruptcy Law | Paul Ross
In Idaho car payments are typically included in the Chapter 13, so you would not make car payments after the filing of your bankruptcy. However, sometimes we will exclude a car from payment within the Chapter 13, so this is something you need to visit about with your attorney. If you are surrendering these vehicles, then your Chapter 13 payments will also not go to fund and pay for these vehicles. Another issue is to see whether this is in your best interest, visit with your attorney to make sure.
Answer Applies to: Idaho
Replied: 8/19/2014
I am sure that your attorney could give you better advice but if you are going to surrender the vehicles in the bankruptcy you do not want to make any payments. Once you file you will get protection from any creditors' actions including repossessions.
Answer Applies to: Minnesota
Replied: 8/19/2014
GARCIA & GONZALES, P.C. | Richard N. Gonzales
You really should consult with your attorney. Cars are suppose to be returned within forty five days. There may be a little leeway here, but your attorney is the best suited to answer these questions.
Answer Applies to: Colorado
Replied: 8/19/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
If your plan calls for the surrender of the vehicles, you should stop making the payments. I hope you did not include the expense of making these payments on Schedule J because the fact that you will not have to pay this expense in the future will impact your required plan payments.
Answer Applies to: Nevada
Replied: 8/19/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    Ask your attorney but cars usually are part of the plan payment.
    Answer Applies to: South Carolina
    Replied: 8/19/2014
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    After you file for bankruptcy relief, you can usually hold on to the car until the car lender asks for it back, which often takes more than a month after filing. Be sure to keep the insurance policy paid while you have possession of the car though. When you file for bankruptcy relief, the first important thing that happens is that the "automatic stay" kicks in. What that does is prevent anyone from taking your property. Of course, they must know about the filing for them to obey the automatic stay. Presumably, the lender on the car was listed as part of the petition; however, sometimes you have to send a notice of the bankruptcy filing directly to the lender to prevent that they "accidentally" repossess your car while the stay protection is in effect.
    Answer Applies to: California
    Replied: 8/19/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    By this time your attorney should have answered your questions. Once you have retained a lawyer, most ethical lawyers will not give you advice which may contradict the other lawyer. The time to ask for second opinions is before you have retained a lawyer.
    Answer Applies to: Oregon
    Replied: 8/19/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If you are surrendering them, don't make the payments. Every jurisdiction is a little different about when the creditor can pick them up. Get advice from local counsel.
    Answer Applies to: California
    Replied: 8/19/2014
    Ronald K. Nims LLC | Ronald K. Nims
    NOOOO, don't pay them. Even if you were keeping the cars, the plan takes care of the car loan during the confirmation process. But since you are turning the cars in, this is unsecured debt which will be put in a pot with your other unsecured debt and paid pennies on the dollar, any payment you make will just be money wasted. Or maybe you can get it back, I'm not sure, I've only been a bankruptcy attorney for 25 years and I've never seen anyone who made a totally unnecessary car payment, and I don't know how I'd handle it.
    Answer Applies to: Ohio
    Replied: 8/19/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    If you are surrendering the cars don't make payments.
    Answer Applies to: Nevada
    Replied: 8/19/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Every attorney may advice you differently but I normally do not surrender a vehicle until after the creditor meeting with your trustee. Once that is done I schedule it prior to a confirmation hearing.
    Answer Applies to: New York
    Replied: 8/19/2014
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Wait for your attorney to answer your question. If you think you are stressed out now, wait until you receive conflicting answers over the internet from attorneys who do not know the details.
    Answer Applies to: Michigan
    Replied: 8/19/2014
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