QUESTION
Is there anything that I can do to keep my car after filing chapter 7?
Asked on Jan 07th, 2012 on Bankruptcy - Maryland
More details to this question:
I filed for chapter 7 and in the paperwork it asks if I planned on keeping anything. I indicated that I plan on keeping my car. I am current on my payments and I have never been late. I just received a letter from my credit union and attorney that they want to repossess my car. How did this happen?
12 ANSWERS
There are a lot of reasons repossession can happen.
Answered on Jul 02nd, 2013 at 3:09 AM
Domestic Relations Attorney serving Wichita, KS
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Law Offices of Michael James Studtmann, P.A.
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As long as you stay current on your payment you shouldn't run into an issue with the loan company. Retain and pay is no longer offered but most companies who are not okay with you continuing to make payment timely may require you sign a reaffirmation to keep it out of bankruptcy. They can proceed to repossess if you defaulted or didn't sign a reaffirmation. This is not normal for someone who is prompt in paying.
Answered on Jan 30th, 2012 at 5:39 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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Bankruptcy itself can be a default. You need to enter into a reaffirmation agreement. The bank's lawyer should be able to help with that.
Answered on Jan 20th, 2012 at 12:34 PM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Although many auto creditors will allow you to retain the vehicle as long as you keep up on contractual payments, they are not required to do so absent a reaffirmation agreement or redemption. Moreover, credit unions are unique animals and many do not take discharging debt lightly. You should work with your bankruptcy attorney to find an arrangement acceptable to the credit union in order to retain your vehicle. However, it should not be a problem finding a replacement vehicle should you be unsuccessful in keeping the current one. There are many lenders and dealerships that do substantial business with people emerging from bankruptcy.
Answered on Jan 20th, 2012 at 12:33 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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Were you cross-collateralized, that is, did you also have a personal loan or credit card with that same credit union? If so, your car secured the other debt, & the credit union could take possession of the vehicle to pay the other debt or debts.
Answered on Jan 20th, 2012 at 11:49 AM
Glen Edward Ashman
Very likely, in making the tremendous mistake of filing pro se (and it is ALWAYS a mistake to file Bankruptcy pro se) you likely failed to file or do something. Retain a lawyer immediately to see if your mistakes are curable.
Answered on Jan 20th, 2012 at 9:34 AM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Christine A. Wilton
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You need to reaffirm the debt. Call the lender and tell them you want to reaffirm.
Answered on Jan 20th, 2012 at 9:11 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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In your Statement of Intentions you indicated you intend to keep your car. You need to contact the lender about signing a written agreement, called a reaffirmation agreement, whereby you will be paying for the car in spite of the bankruptcy. If you don't come to an arrangement with the lender they will be able to repossess after the bankruptcy discharge.
Answered on Jan 19th, 2012 at 4:31 PM
2 Awards
If you're current on your car they can't repossess.
Answered on Jan 19th, 2012 at 4:20 PM
judith runyon
Evidently you didn't sign a reaffirmation agreement with them on the car while you were in your BK.
Answered on Jan 19th, 2012 at 3:07 PM
Bankruptcy Attorney serving Seattle, WA
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Symmes Law Group, PLLC
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If you keep making your payments you should be ok. If your lender requires you to sign a reaffirmation agreement you may want to consider it, however it is not recommended that you sign a reaffirmation agreement as you could be liable for the debt at a later date should something happen to your car.
Answered on Jan 19th, 2012 at 3:03 PM
Criminal Law Attorney serving Ellicott City, MD
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Law Office of William C. Wood, LLC
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Did you receive a reaffirmation agreement to sign? In order to keep a car that is subject to a secured loan, you are required to either pay off the loan or to enter into a reaffirmation agreement. The agreement effectively reaffirms the terms of the loan and provides the lender with security. If such an agreement is not signed, then you would be discharging the debt through the bankruptcy and the lender would not be able to recoup any potential losses in the vent of a default.
Answered on Jan 19th, 2012 at 3:03 PM