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Debt and Bankruptcy

What happens if you are facing both bankruptcy and repossession?

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2016-07-03 12:19:53
2016-07-03 12:19:53

Well, "repo man", a bankruptcy will allow folks to get their car back - even after repo. The clincher is, if the car was auctioned or not. That would be the only obstacle preventing the car from being returned, at least in terms of a Chapter 13.

So, if you want your car back: file Chapter 13 and do it quickly.

I am a repo man, and ironicly this happend on a case last week. The debtor (you in this case) filed for bankruptcy at 8:00am. I repoed his car at 7:30pm that night. After a few days on the phone with his laywer, and bank, the car was returned at the descretion of the bank. So, if you file before your car is repo'd, you can keep the car for that period of time. Your report will show what the bank wants to say, call them about it.

No, it is not easy to hide a car, e.g. a car was 15 miles from the persons house under a tarp, under a pile of hay, inside a barn (that was open), and we got it. Once your car is repo'd that's it, bankruptcy cannot help.

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AnswerI HAVE FILED BANKRUPTCY WHEN SHOULD I TURN THE CAR IN i HAD A CHOICE TO KEEP PAYING OR NOT KEEP IT i CHOSE NOT TO KEEP IT BUT WHEN SHOULD i TURN IT IN i HAVE NOT MADE A PAYMENT FOR ONE MONTH . AnswerThe court will make arrangments for the car to be turned over and they will let you know. AnswerAll depends when the BK was filed. If it was filed pre-repo then the repo cannot be done unless ordered by the court. If it is filed post repo then, well, you were just too darn late with the filing. If you have signed a relief of stay for the vehicle, it can be repossessed even with the BK being filed. AnswerI had this happen to me. I had a repo guy call me for my truck and it was ironic because he called me the night before I had an appointment to go file Bankruptcy. Needless to say I was at my lawyers bright and early and told him the repo guy was going to come and get my truck that night but said he would call ahead because I live about 80 miles from where he was coming from. We filed a chapter 13 and included the car and my lawyer told me to call him and tell him to call the lawyer's office and they would advise him that he can't take the car. He didn't believe me and said he was coming to get the car anyway and my lawyer advised me to call ahead to the sheriff's office and advise them that you had filed a bankruptcy and give them a copy of the order so that if he shows up, they can tell him to leave. He actually told me to just not answer the door...there's nothing that says you have to listen to them.

FYI; I still have my truck via a Chapter 13. It ain't pretty but it's better than a repo on my credit. A chapter 13 restructures your debt into a new payment plan so if you're way behind like I was, the minute you file you are automatically current. I was paying $475/month for my truck and under my Ch 13 plan I'm paying them $255/month. Also, they also only award the NADA value of the vehicle which was nice for me cuz my loan balance was $15,000 but my truck was only worth about 10,000.

Somthing to think about.

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Both, Its bad debt period and you will suffer bad with either.

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No, both parties on a joint mortgage do not need to file bankruptcy. They can file a joint bankruptcy or a single bankruptcy.

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In the state of California, the lender of a repossession may only charge fees that it incurs and that are in the contract. If the lender pays for the storage or houses the repossession, then yes, the lender is allowed to charge both a repossession and a storage fee.


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