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  1. #1
    Join Date
    Feb 2010
    Posts
    15

    Default How Current is Current

    My question involves bankruptcy in the state of: NJ

    We are in the process of finally filing Chapter 7, I am told you need to be "current" to keep your secured debt what is defined as current, exactly to the day, within the grace period, or within the month. I called my mortgage company to find out and I was told they follow the state guidelines (?) did not know there were state guidelines, and information on this would be greatly appreciated

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: How Current is Current

    "Current" means paid on time per your contract. If you do not make timely payments the secured lender may seek relief from the automatic stay and pursue remedies such as repossession or foreclosure; if you are delinquent after the stay is lifted the secured lender can simply proceed with those remedies.

  3. #3

    Default Re: How Current is Current

    Might I assume your secured debt is a car or other vehicle?

    This varies widely. Some vehicle creditors will come and get their car within a day or two after the payment is late (like those "we finance anyone, buy here pay here places) while others could take up to 3 months before repossession. The reputable financers often have a 10 day grace period before they even impose a late charge. Just call your finance company and find out how they work.

    We had a car loan once thru a big finance company and let me tell you - once we fell a solid month behind they started calling to harass. after a few more weeks we just told them to come and get the car, we could not afford it. Of course they were quite rude, I won't post what my spouse told them cause I would get banned for the language. Anyways it was not until we were 3 whole months behind that they sent out the repo man sometimes in the middle of the night to get the car. My spouse comes in one morning and said - "they got the car". I said, "Oh ok, took them long enough!"

    Anyways with other secured debt, just call and ask what their late policy is as far as repo, late fees etc...

  4. #4
    Join Date
    Feb 2010
    Posts
    15

    Default Re: How Current is Current

    I'm actually asking pretaining to chapter 7. I am trying to figure out exactly what they are refering to as current, most what I am hearing is within 30 days is still considered current. I called my mortgage compnay and they said they act according to state guidelines, I don't what they are talking about so I am trying to find out anything I can....

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: How Current is Current

    There's no "state guideline" that will tell us when a payment is late under a given contract. If you want to know what "guideline" this person has in mind, call back and ask them to specifically identify it.

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