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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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i need some clarification on my bk about ach debits? i know

Customer Question

i need some clarification on my bk about ach debits? i know you guys answered this before.ok there is car involved.my father is on the loan of a car im just on the title.the loan has and ach debit on his checking account will they ach debit stop? once again i am not on the loan.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 3 years ago.

cfortunato :

Hi JACustomer,

cfortunato :

Are you asking about a Chapter 7 or a Chapter 13 Bankruptcy?

cfortunato :

Also, is your name also on the loan?

JACUSTOMER-2h0j9632- :

chapter seven.

cfortunato :

In addition to being on the title?

JACUSTOMER-2h0j9632- :

yes just on title

cfortunato :

Thank you for your response.

cfortunato :

Your Chapter 7 will have no affect on an ach debit from your father's checking account.

JACUSTOMER-2h0j9632- :

will this stop the ach debit

cfortunato :

No - the ach debit will not stop.

cfortunato :

If your name was on the loan, then the car loan company could not continue to collect the loan from you, but they would still be able to collect it from your father.

cfortunato :

In fact, there is no reason for the car loan company to know about your Bankruptcy.

cfortunato :

Since they are not a creditor of yours, they will not be notified by the Bankruptcy court that you filed a Bankruptcy.

cfortunato :

Only your creditors get notified.

JACUSTOMER-2h0j9632- :

one last question my lawyer had to put it as an asset in my bk documents schedule d. creditors holding secured claims.she had to list it as an asset does that make a does that change any thing these documents are confusing

cfortunato :

That is correct. Since your name is on the title, the car gets listed as an asset. It does not matter that your name is not on the loan.

cfortunato :

(If your name was on the loan, but not on the title, then the car would not be listed as an asset.)

cfortunato :

What matters is whose name(s) are on the title.

JACUSTOMER-2h0j9632- :

do the ach debits stop im just really nervous i do not want this bk to affect my father in any way

cfortunato :

No - ach debits from your father's account will not stop.

cfortunato :

Don't be nervous. The car loan company will not even know that you filed a Bankruptcy.

cfortunato :

But even if they did know, there would be no reason for them to stop the ach debits.

JACUSTOMER-2h0j9632- :

why did my lawyer put it om my bk forms

cfortunato :

He listed the car loan company as one of your creditors?

JACUSTOMER-2h0j9632- :

yeah

cfortunato :

On Schedule D?

JACUSTOMER-2h0j9632- :

yes

JACUSTOMER-2h0j9632- :

should i be concerned

cfortunato :

In my opinion, the car loan company does not have to be listed on Schedule D because the car loan company is not one of your creditors. However, if the car loan company is not listed on the matrix, then the car loan company will not know about the Bankruptcy.

JACUSTOMER-2h0j9632- :

what is the matrik

cfortunato :

That is the mailing list of creditors.

cfortunato :

This Bankruptcy can discharge your debts, but cannot affect your father's debts.

cfortunato :

Again, your Bankruptcy can have no affect on your father's account.

JACUSTOMER-2h0j9632- :

i just really do not understand why she listed on she schedule D.if i am just on the title

cfortunato :

Because the form says to list ''all entities holding claims secured by property of the debtor". But then the form says to provide the "debtor's" account number. So the form is misleading, but even if the car loan company is listed, it is not necessary to provide your father's account number.

cfortunato :

Since he is not the ''debtor'' - you are the ''debtor''.

JACUSTOMER-2h0j9632- :

they have the account number for the loan but not his checking account number.

cfortunato :

Even if they had your father's account number it would not matter, as your Bankruptcy can have no affect on your father's debts or your father's ach debit.

cfortunato :

Even though your name is on the car title.

JACUSTOMER-2h0j9632- :

will this bk have any negative affect om my fathers credit.

Expert:  cfortunato replied 3 years ago.
Your Bankruptcy can have absolutely no affect on your father's credit, and will not show up on his credit report.