Perhaps you could use the used vehicle dealer as an intermediary. That would explain the refund of checks, but would not explain them sending the title. Typically, circumstances like yours are the only ones where my old firm would recommend direct pay.īut maybe the creditor got confused? Ask your attorney to double check if Capital One filed a claim in the plan, and are getting paid as part of the bankruptcy. As I'm sure your attorney explained to you, typically cars are paid inside the plan because you can save on the interest. I understand that the reason you were doing direct pay on the vehicle in a Chapter 13 was to protect the cosigner from any hanging liability after discharge. So the way I see it, and please double check with your attorney about his opinion as well, is that your bankruptcy discharges any debt owed at the time of filing, so you would be off the hook no matter what, but your cosigner could be responsible. Print the emails if you can, and save them with the copies of the checks. Save any correspondence from them that shows this.Photocopy all the checks before depositing them.I would never tell you not to try with all your might to be honest and forthright about it. If that happens, I suppose it could be used as a defense to any attempt to collect, thought I've never had to deal with a case where the creditor basically said "you're paid in full" and then retracted that statement after turning over the title. The most interesting thing is that the title is en route to you via mail. It's like the old Monopoly card bank makes an error in your favor, except the potential for backfire is far greater than returning the $200 you collect in the game. 10 years in a bankruptcy practice I've never seen anything like it. ![]() You are absolutely correct that this is very strange. The whole thing is just nuts and I'm curious if anyone has experienced anything like this or has any insight. If that happens, his understanding is CapOne will have no ability to repossess the car. My attorney has never experienced anything like this before and has advised that I wait to see if they actually do receive the title. This obviously has me freaked out because I'm afraid of CapOne either trying to come after me for months of "missed" back payments, or trying to repossess the car. But no one can explain why my previous payments were refunded, why my account is listed as being paid off, and why the title is supposedly on its way to me. I get it - all those guys can do is read what's on their screens. CapOne always bounces my call to AIS, which has an outsourced customer service center somewhere in India. I've spent the last three days calling people at CapOne and AIS trying to get an explanation. When I call CapOne and give them my account info, I get a message saying my account is paid in full and the title for the car is en route via mail. There was no explanation attached as to why my payments were being refunded. About a week ago, I received a bunch of checks from Capital One refunding all the payments I made on the car since September. CapOne bounced the servicing of my loan over to an entity called AIS, or American InfoSource, and I had to call every month to make payments over the phone, which I was doing, no problem. I learned this is pretty standard with a lot of loan lenders as my attorney explained, it's an extreme interpretation of the "no contact" stipulation within bankruptcy law that is quite silly, but also not uncommon. The loan was with Capital One.Īfter we successfully filed the Chap 13, CapOne removed our ability to make online payments of any kind. Right before that, on the advice on my attorney, I financed a used car with my father as a co-signer. ![]() My wife and I entered into Chapter 13 back in September.
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