Do I still need to pay my outstanding debt on a vehicle that has already been repossessed?

Question

I had a car repossessed (over 3 years ago) but still owe money on the loan. Since the car is no longer in my possession, would it be considered secured or unsecured? In chapter 7 filing how would I list outstanding debt on a vehicle that has already been repossessed?

Marc Stern · Answer

It is an unsecured loan and should be scheduled as such.

Paul Stuber · Answer

It is now at this point unsecured.

Susan Taylor · Answer

List it as an unsecured debt on schedule F.

David Benson · Answer

Assuming the collateral has been sold and the proceeds offset against your debt, the remaining balance on the loan will probably be unsecured. But your bankruptcy lawyer should be able to assist you with the specifics of your case.

Eric Lewis · Answer

Debt related to a "deficiency" after repossession is considered unsecured and is subject to discharge in bankruptcy.

Philip Boardman · Answer

This would be considered unsecured and would be listed in Schedule F.

Asaph Abrams · Answer

Repossessions commonly effect deficiency claims.  This implies an outstanding unsecured debt upon an originally-secured loan.

Deborah Stencel · Answer

Now that the car has been repossessed and sold at auction, you still owe a deficiency balance on the loan. Without a bankruptcy, the creditor can try to collect this from you.  If you are filing a bankruptcy, you would list this debt as unsecured (on Schedule F).

Kenneth Parker · Answer

It is considered an unsecured debt unless the creditor sued you, a judgement was entered and a lien filed. If no judgment/ lien was filed, you will list it on schedule F.  It stopped being secured once the car was repossessed and sold.

Jeffrey Cook · Answer

It was a secured note; until they repossessed it.  They took the car, sold it and applied the sales price to the note.  The amount of money still left over after applying the sales proceeds is the deficiency and yes, you are still liable for this debt.  If you file a Chapter 7, this debt would be unsecured and you could discharge it.

William Rubendall · Answer

Once a repossessed vehicle is soldthe deficiency is owed as an unsecured debt.  In a chapter 7 the debt would be listed on schedule F of the petition. This is the kind of debt that can be discharged.

Robert Taylor · Answer

After the collateral is sold, the remaining balance is unsecured debt.

Glen Edward Ashman · Answer

You still owe the balance.  In most Chapter 7's it can be discharged so long as you don't screw up the case.  Your post indicates that you are about to screw up, as it tells me you plan to file pro se.  Do not.  I repeat that.  Do not.  Having a lawyer will make sure things are done right.  It is money you cannot afford not to spend.

Marjorie Guymon · Answer

You still owe on any deficiency. It is dischargeable in bankruptcy.

Curtis Chronister · Answer

You would list it as unsecured.

Richard Symmes · Answer

If the car has already been repossessed then it is an unsecured debt that can be discharged in your chapter 7 bankruptcy. You can stop making payments on this debt.

Tony Carballo · Answer

It is unsecured now and you do not have to pay it if you are filing bankruptcy and can obtain a discharge.

William Wood · Answer

It would be listed as an unsecured debt.

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Do I still need to pay my outstanding debt on a vehicle that has already been repossessed?

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