QUESTION
My car was repossessed and I decided to file bankruptcy, do I still have to pay?
Asked on Nov 05th, 2015 on Bankruptcy - New York
More details to this question:
My car was repossessed couple weeks later I decided to file chapter 7, a week or so later got a letter stating the car would be going to auction. Then I guess the creditor received notice that I'm filing chapter 7 and about a week prior to my court date the creditor filed a relief from automatic stay and the trustee denied it then couple days later I received another stating that the file for relief from automatic stay was granted and have been given a second court date. Why is this and is this a bad thing for me when it comes to my chapter 7 and will I have to still end up paying what I owe? Thanks for any advise you can give me.
7 ANSWERS
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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No, they're just getting permission to sell it. You shouldn't owe anything to the creditor.
Answered on Nov 20th, 2015 at 4:32 AM
It sounds like the lender is attempting to sell the car at the auto auction to avoid having to pay expensive storage fees. It does not sound like the creditor is seeking to require you to pay any deficiency from a sale, which would be a violation of your upcoming bankruptcy discharge.
Answered on Nov 13th, 2015 at 4:24 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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First things first: you need to consult an experienced bankruptcy lawyer. Your issue is not simple. And retaining a good lawyer is almost always worth the expense. Good Luck.
Answered on Nov 13th, 2015 at 3:42 AM
No that is why you are filing so they can not ask you for the money any longer.
Answered on Nov 13th, 2015 at 3:41 AM
2 Awards
No, you do not have to pay any deficiency from the car. Once you receive your discharge the obligation will be wiped out. The letter is for informational purposes only.
Answered on Nov 13th, 2015 at 3:41 AM
If you filed your bankruptcy without an attorney, now might be a good time to talk to one because it sounds like you don't really understand what's going on. Bottom line is that they can't make you pay anything more for the car unless you would like to get it back, in which case you would need to make peace with the creditor somehow.
Answered on Nov 13th, 2015 at 3:41 AM
They can sell the car to recoup the debt but cannot chase you if it comes up short of what you owe.
Answered on Nov 13th, 2015 at 3:41 AM