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A vehicle is a secured loan and cannot be discharged in bankruptcy. If a reaffirmation agreement between the lender and the borrower is not possible the vehicle is usually repossessed. However, the lender does not have a legal obligation to recover the vehicle. The lien will not be released until the loan is paid or settled to the satisfaction of the lender. Under new bankruptcy laws, the lender is entitled to collect the full amount of the loan plus any applicable legal fees and interest. This generally means that the lender will file a lawsuit to obtain a judgment which can be used as a wage garnishment, bank account levy or other method as allowed by the state laws to collect money owed.

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โˆ™ 2006-03-16 23:22:40
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Q: What do you do if you stopped making payments on a car loan after filing chapter 7 bankruptcy and the creditor has refused to repossess the vehicle but will not release the lien?
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After filing chapter 7 you did not reaffirm your car loan what happens now?

2 factors: 1. Are you current on your payments? - if you are not current on your payments the creditor will most certainly repossess your vehicle. however you will not be liable for any deficiency amount. 2. Who is the creditor? - Most creditors will gladly continue to accept payments on the vehicle and not repossess it. however some creditors such as Ford Motor company will repossess regardless of whether or not you are current.


What happens after chapter 13 bankruptcy?

Chapter 13 bankruptcy is basically a set repayment plan that is usually allowed by court, even if the creditor objects. When you satisfy your payments in the allotted time you have usually settled your bankruptcy. See the related link below for detailed info on chapter13 bankruptcy.


If a car has a lien placed on it prior to bankruptcy being filed do you get the title back when the bankruptcy is completed?

It really depends on the type of bankruptcy petition you file. If you file for Chapter 7 bankruptcy the creditor who put the lien on your car may be able to take your vehicle. If you file for Chapter 13 bankruptcy you'll have the opportunity to make payment arrangements with your creditor and in that case you should get the title back after all of your payments are made and your amended. contract with the creditor has been fulfilled.


If you file for chapter 7 bankruptcy and have the first meeting with the treasurer can you still add a creditor to the bankruptcy?

You should have no problems filing an amendment to add the creditor.


If you are not listed as creditor on chapter 11 bankruptcy?

File a proof of claim


Filing a Chapter 7 with 2 payments owing on your car how long do you have in getting it current before the creditor can take it if you plan on curing the default 30 days after filing?

When you file a Chapter 7 bankruptcy, you have the option to keep your home and 1 vehicle. If you are able to make the last 2 payments on the car, you can keep it and not include it in the bankruptcy.


Can your car be repossessed after filing chapter 7 bankruptcy?

Yes, if the creditor first obtains relief from the automatic stay. This is accomplished by filing a motion and proving that you have not made payments on the vehicle.


What if the creditor sells the car anyway while automatic stay is in effect?

In a Chapter 7 bankruptcy, a secured creditor has the right to repossess any secured property and sell it. However, if the car does not bring enough at the sale to pay off the entire loan and cost of repo, the automatic stay prohibits the creditor from pursuing this deficiency balance.


Chapter 13 bankruptcy be dissimisal?

You can get a Chapter 13 bankruptcy dismissal by asking your lawyer to ask the trustee for a dismissal. If you are having trouble making the payments, you can ask for you bankruptcy to be modified.


Does chapter 7 protect from civil suit?

Yes, as long as the creditor is listed on the bankruptcy.


Can chapter 13 bankruptcy payments go up?

Yes, they may.


Will bankruptcy affect your car that is being used to secure a loan?

As long as you keep making the loan payments the creditor wont care if you declare bankruptcy. If doing a cram-down in a chapter 13, the lender would have to accept the current value of the car.


Can a creditor force a debtor into an involuntary chapter 7 bankruptcy?

Yes, involuntary bankruptcy is available under both chapter 7 and chapter 11. However, it is not available against certain types of debtors.


Can you file bankruptcy on a rental house and keep your home?

You don't file bankruptcy "on" anything. You file bankruptcy to get the protections bankruptcy offers. If there is no equity in the rental house and you surrender it to the creditor, you will be able to keep your (presumably different) home if it is up to date on mortgage payments, or if you file a Chapter 13 with a Plan that includes becoming current.


How does a creditor answer Chapter 7 bankruptcy?

By filing a proof of Claim, or by addressing questions/arguments to the court


Will you lose your home in Chapter 13 Bankruptcy?

If you don't make the payments, then yes.


If you are behind on your house payments and file chapter 7 bankruptcy can they take your house?

no


You are financing a vehicle but you can no longer afford payments what can you do?

Talk to the lender, or you can file Chapter 13 Bankruptcy to lower the payments where you can afford them.


How are back child support payments made in a chapter 7 bankruptcy?

Unaffected and not covered.


Can you file bankruptcy in Ohio then move to Germany before the bankruptcy is complete?

Yes, you can move anywhere you want to, but if you are paying payments (Chapter 13) you are still legally obligated to make the payments.


Can a creditor remove an amount owed them from under your chapter 13 bankruptcy and demand payment?

The creditor is bound by the terms of the Chapter 13 plan. If the creditor doesn't file a proof of claim, then they don't get anything. If they are demanding money, the creditor could be in violation of the automatic stay and you can bring a motion for sanctions.


Can a secured debt be taken from you after it was discarged in a chapter 7?

In most Chapter 7 cases you are not including secured property unless you are surrendering the property back to the creditor. If you are holding on to secured property during a chapter 7 process the property must be reaffirmed with the creditor at time of filing meaning you have an agreement with the creditor to leave the property out of the bankruptcy and continue to make your payments. When you discharge debt through chapter 7 it doesn't make sense that you could keep a secured piece of property and not pay for it. Maybe you were unclear about what you were really doing.


When a creditor is paid-off through a Chapter 13 Bankruptcy is the creditors information automatically removed from your credit history?

No. Sometimes it will be reported as "Included in Bankruptcy"


If my wife filed for personal bankruptcy are you responsible for her debt?

No you are not. When one spouse and not the other files for bankruptcy they are only doing so with regard to their personal debt. A debt is created by contract between a debtor and a creditor - each debtor must sign the contract to be liable for payment. Therefore, the bankruptcy of one spouse does not cause the other to become bankrupt. Debts where spouses are joint and severally liable for payment will remain with the spouse who has not filed for bankruptcy. Under Chapter 7 bankruptcy, where one spouse's debts are wiped clean, the creditor can go after the other spouse. However, a major advantage of Chapter 13 bankruptcy, where the debtor plans to re-pay her debts, is that the creditor will leave the co-debtor alone, as long as bankruptcy plan payments are timely deposited.


Can only one spouse file bankruptcy when the other one owns the cars and house?

In general, the filing of bankruptcy by one spouse will not affect the other spouse's financial situation. A debt is created by contract between a debtor and a creditor - each debtor must sign the contract to be liable for payment. Therefore, the bankruptcy of one spouse does not cause the other to become bankrupt. Debts where spouses are joint and severally liable for payment will remain with the spouse who has not filed for bankruptcy. Under Chapter 7 bankruptcy, where one spouse's debts are wiped clean, the creditor can go after the other spouse. However, a major advantage of Chapter 13 bankruptcy, where the debtor plans to re-pay her debts, is that the creditor will leave the co-debtor alone, as long as bankruptcy plan payments are timely deposited.