QUESTION
What happens with reposession after Chapter 13 bankruptcy?
Asked on May 09th, 2012 on Bankruptcy - Texas
More details to this question:
I am currently in Ch 13 bankruptcy for 2 yrs now & my car will be repossessed are they able to go after me for the deficinecy? And if so what if I am unable to pay that what happens?
8 ANSWERS
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Why is your car being repossessed while you are under chapter 13 protection? The debt should be covered by the plan. If the car is repossessed any deficiency would be paid by an amended claim being files as an unsecured debt. Consult with an attorney as to the specific facts of your case.
Answered on May 18th, 2012 at 12:13 PM
If the debt was incurred before you filed for bankruptcy protection then the deficiency is a general unsecured claim which should not have an effect on your chapter 13 plan.
Answered on May 17th, 2012 at 10:32 AM
Your auto lender will become an unsecured lender, just like all the others ... and treated like all the others in your Chapter 13 plan... unless your plan calls for something different.
Answered on May 16th, 2012 at 12:48 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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First of all, you need to consult with your attorney about this matter. If you reaffirmed the debt, yes they can go after you for a deficiency judgment. If you are unable to pay, and the car is repossessed, and the bank gets a lifting of the automatic stay, and they get a deficiency judment against you, it will be good for 20 years if they record it properly. You see there are many things that your attorney can help you with, on this one issue.
Answered on May 16th, 2012 at 12:47 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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There are some conflicting opinions on this issue. I assume your plan said you would continue to make payments on the car. However, I would take the position that the debt will be discharged when you receive your chapter 13 discharge and that they cannot now try to collect either because you are in a pending bankruptcy.
Answered on May 16th, 2012 at 12:29 PM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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Bereliani Law Firm, PC
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The deficiency balance will be covered by your discharge as it was a debt you incurred prior to the date of filing. You incurred the debt when you signed the contract.
Answered on May 16th, 2012 at 12:26 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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I hope you are presented by an attorney. If so, please call them for advice. If not, you should be fine so long as you listed both the debt and the asset in your schedules. Most likely you will need to modify your plan, assuming it is confirmed. If it is not confirmed you will need to amend it. Show that you intent is to surrender the vehicle.
Answered on May 16th, 2012 at 12:20 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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If you are unable to make your payments under a Chapter 13 repayment plan, the trustee may request the court to dismiss your case and your creditors will be allowed to continue collection efforts against you. It may be a better idea to convert your case to Chapter 7 before the case is dismissed.
Answered on May 16th, 2012 at 12:13 PM