Chapter 7 filed before the 17th. Is there any way to get an auto put on Schedule 3 of exempt property, Then ask court for llie
avoidence. To be able to keep the auto and not payoff the debt? I am pissed I have no equity because they put every payment for 3 going on 4 years towards their interest and just now are applying payments to the actually property. Is that trick legal?
Your auto loan is a secured debt, and secured debts can't be avoided in a Chapter 7 case. Lenders are routinely granted relief from the automatic stay so that they can repossess vehicles on which the bankrupt has not paid.
The way your loan is being paid is standard. In fact, there is no other way to do it. You agreed to pay a particular interest rate on a particular sum over a particular period. The lender calculates the total amount you will have to pay, and divides it into equal monthly payments, but the early payments are primarily interest and the later ones primarily principal. If they let you pay down your principal first then you would end up paying much less interest than you agreed to pay. Assuming that your lender is sealing honestly with you, they payment schedule it has set will result in you paying exactly the amount of interest you agreed to pay by the end of the loan term.