QUESTION
Chapter 7 and car voluntary repossession can they still come after me for payment?
Asked on Jun 03rd, 2013 on Bankruptcy - Idaho
More details to this question:
I recently filed a chapter 7 and have been discharged. After my bankruptcy was finalized, I submitted to a voluntary repossession of my vehicle. The Finance company is now mailing me letters stating the vehicle will be sold at an auction and I am responsible for the balance once the vehicle is sold. Can they still come after me for payment? The previously garnished my wages for the car debt and once my bankruptcy was initiated the garnishment was stopped. I thought they would not be able to still try and re-coop monies from me. Can someone please help?
12 ANSWERS
If you did not sign a reaffirmation agreement with the auto loan company, you will not be responsible for the deficiency balance after they sell the car.
Answered on Jun 05th, 2013 at 10:20 AM
As long as you did not reaffirm the car loan (ie., sign a Reaffirmation Agreement) as part of your bankruptcy, the auto lender is violating the discharge injunction by pursuing you for this pre-petition debt. You should discuss this with your bankruptcy attorney.
Answered on Jun 05th, 2013 at 10:20 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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No, unless you signed a reaffirmation agreement. Talk to your bankruptcy attorney to determine your rights and their obligations.
Answered on Jun 05th, 2013 at 10:20 AM
Most likely a standard form and nothing to worry about.
Answered on Jun 05th, 2013 at 10:19 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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If you did not reaffirm the debt, they cannot come after you.
Answered on Jun 05th, 2013 at 10:19 AM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Look closely at the letter it may not be an attempt to collect but simply notice of the deficiency, which them must provide. No, the can't collect.
Answered on Jun 05th, 2013 at 10:18 AM
Bankruptcy Attorney serving Henderson, NV
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Jeffrey A. Cogan Chartered, a PLLC
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The letter to you is in violation of the discharge provision. They used a standard form saying that you are responsible for the balance and you could get money from them. The only money you could probably get though is a reimbursement of attorney's fees.
Answered on Jun 05th, 2013 at 10:17 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Assuming that you did not reaffirm the debt, the obligation to pay the deficiency was discharged in your bankruptcy. Any continued attempt to collect the deficiency is a violation of the discharge injunction. However, if you reaffirmed the debt after you filed the bankruptcy petition, your obligation to pay any deficiency after repossession was restored and the creditor can pursue you for the balance.
Answered on Jun 05th, 2013 at 10:17 AM
The creditor is sending you the standard form letters they send to everyone that has returned their car. Probably someone without a high school diploma making just over minimum wage. Mail a copy of your bankruptcy discharge to the creditor or better still, have your attorney do this. If this creditor should proceed with a suit against you, you will be entitled to seek some nice money damages against this creditor for violating the bankruptcy discharge. Not quite as good as winning the WSOP, but a nice paycheck of a few thousand dollars plus attorney fees. So hire the best bankruptcy litigator you can find if this creditor continues to bother you.
Answered on Jun 05th, 2013 at 10:16 AM
Deborah F. Bowinski
No, you are not responsible for payment if your case has been discharged. Read the letter carefully - they may have included a statement in small print indicating that if you have filed bankruptcy it is informational only and is not an attempt to collect a debt. If they ARE actually trying to collect you should speak with your attorney or consider consulting with one since it would be a violation of the discharge order.
Answered on Jun 05th, 2013 at 10:16 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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They cannot collect from you on the deficiency. I would send them a copy of your discharge order and a letter telling them that if they do not stop harassing you, you will file a motion for contempt against them.
Answered on Jun 05th, 2013 at 10:16 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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The company cannot come after you for the debt. Technically the letters to you can be construed as a contempt of the discharge order in your case. Notify them, or have your attorney notify them, that they are in violation of your bankruptcy discharge.
Answered on Jun 05th, 2013 at 10:14 AM