If you file chapter 13 after your car is reposessed can they come after you for the loan balance?

Answer 1

First is if you qualify for C-7 and not a required payment plan C-13.

Basically, bankruptcy uses all your assets to pay all your debts.

The loan and deficit is a debt.

It was secured by the car, which is an asset (you no longer have). You probably have others.

You MUST include all of your debts and all of your assets in the filing. You do not and cannot pick and chose what is involved. All are given priorities, some of each may be exempt from seizure or discharge.

You really arent' thinking BK will eliminate the obligation to pay and let you keep things you want for free were you? (Yes, after usable assets are dissolved/sold, remaining debt may be discharged....the idea being you have a clean slate).

Answer 2

You may, but it is highly unlikely. The fact that you filed BK has negatively affected your credit rating. The time to reaffirm is during the BK procedings. Afterward, the lender will treat you like any other prospective borrower, and that negative rating will be what they look at.

Answer 3

Only if the lender agrees to lower the amount due, remember that the BK discharged the promissory note; there is no legal mechanism to force the lender to lower the amount due (you are in a very weak bargaining position). If you dont make the full payments the lender is entitled to repossess the car.

Answer 4

No. Once they have it the only way to get it back is to either pay it off or catch up to the lienholder's satisfaction. Chapter 7, after the repo, will prevent them from collecting the balance.

Answer 5

No. Any debt owed PRIOR to the filing of the 13 is affected. However, any debt incurred AFTER The 13 was filed is not protected.

Answer 6

Actually you can get your vehicle back if you file bankruptcy within 10 days of your vehicle being repossessed. Your attorney can file an emergency injunction if needed.