Q: I am having problems with bank about a past bankruptcy
I filed chapter 7 in 2008
My lawyer was supposed to remove my car off of it. I refinanced car right after bankruptcy. In 2011 I got beside on payments. Then the bank comes back and said I filed bankruptcy on it so I gave it back to them. A few months ago the sent me a letter saying they gonna take me to court for the loan. I don't know what to do.
A: Please correct me if I've misunderstood, but in your question you indicated that you filed bankruptcy in 2008, but then refinanced the car in 2011. If the refinance took place after the bankruptcy, that's new debt which isn't included in the 2008 case. As such the creditors are within their rights to attempt to collect. There might be other defenses to the collection efforts. For example, the statute of limitations may have run on the debt, but for this you need to talk to a local bankruptcy attorney to get a better idea of your options.
Bruce Alexander Minnick agrees with this answer
A: There is no “taking the car out of bankruptcy in a Chapter 7. You must list all debt you owe at the time of filing. If you didn’t refi the car til 2011, that is post petition debt that is not discharged by your. A Krupp year. That means if you got behind and they repossessed the car, they can sell it and still sir you for the deficiency balance.
Bruce Alexander Minnick agrees with this answer
A:
Let me get this straight: you had a car in 2008 and filed bankruptcy? Then after filing bankruptcy you refinanced the SAME car? If so, why was your lawyer supposed to “get your car off, what?” Did you reaffirm the car and promise to continue to make the same pmts on the car that you had been making and so wanted the lawyer to “not list” your car on schedules B and F and H? Now in 2011 while making “refinanced” pmts, you got behind again on pmts and now the bank says they’re going to take you to court?
Of COURSE the bank will take you to court. They’re entitled to repossess the collateral for their new, refinanced loan. They’re entitled to sell your car in a “commercially reasonable manner,” and sue you for the remaining sum you owe minus what they received when they sold it. That’s the UCC remedy. Sorry you purchased such an expensive car that you’ve been unable to pay off, TWICE! Seems like there may be a lesson in there some where if you’ll listen?
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
