QUESTION
Can a lender reposess an auto after filing Chapter 7 which hasn't been discharged yet?
Asked on Mar 06th, 2014 on Bankruptcy - Georgia
More details to this question:
I filed for chapter 7 BK and in the process of working with the trustee. It has not been discharged. I am 30 days late on my auto payment. I am wanting to know if the lender can reposess my car while we are awaiting the discharge. I may lose my license which is why I haven't paid the payment. If I do not lose my license, I will reaffirm the auto.
1 ANSWER
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In a chapter 7 bankruptcy, the legal mechanism that prevents the lender from repossessing your vehicle for nonpayment is call the automatic stay. The automatic stay may be listed by a motion filed from the bank. Your best course of action would be to not reform the debt on the auto, but keep making monthly payments. That way if you keep your license you'll be able to keep the automobile and if you lose your license and automobile is repossessed then you will not be liable for the debt. We never have our clients reaffirm any debt in chapter 7 bankruptcy at my firm.
I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options.
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Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave. Unit 2 Fall River, MA 02723 Office: 888-269-0688 FAX: 877-475-8147
Answered on Mar 20th, 2014 at 12:27 PM