Expert: Mark J. Markus- California Bankruptcy Attorney - 1/28/2009

Question
Hi.  My Chapter 7 was discharged in August 2008.  I'd like to know if it is possible to re-open my BK case to include a vehicle.  Here's my situation:  With the economy taking a turn for the worse, my husband is taking a 20% reduction in pay and myself a 10% reduction in pay.  Although I've been asking for help or available options from my mortgage company and loan holder of my vehicle, all they tell me is if I don't pay, my house will foreclose and my car repossessed.  And with the car, I'll be responsible for the difference of what it's sold for at auction and the balance I owe, and a lien placed on my home.  I just don't know what to do.  I am willing, if possible, however, to pay the fees to re-open the case.  Any advice is appreciated.

Answer
Depending on where your case was filed (for some reason you don't disclose that) you may not need to reopen your case.  Assuming you had this vehicle when you filed your Chapter 7 case, it had to be included in your schedules along with the corresponding secured debt.  Unless you entered into a valid reaffirmation agreement with that creditor, the debt to them was discharged in August 2008 and you have no further legal obligation on the vehicle.