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Question
My husband and I filed chapter 7 it will not be discharged until June....In 05 he took a 20,000 car loan out with a credit union in Pa...We have 9,000 left on the car loan and never were we late with a payment...Last Saturday he was in a car accident,not his fault,we are going to have it fixed then we want to surrender the car back to the bank...WE never signed a reaffirmation agreement on the car...Can we surrender the car even though our case is not discharged yet?...Are there ramifations in doing this?....Can the bank put a lien on the house for the balance of the car?...Just to let you know we did include the car in the bankruptcy case?...Can we buy my dads car from him now before the case is discharged?....Thanks
I generally can't answer a question like yours, because I don't have the opportunity to review all the papers and speak with you. Because of that, there can be a risk of overlooking something. I do advise you to consult a good local attorney immediately. However, what I can do is provide you with some discussion points for you to raise when you meet with an attorney. An attorney who has the actual opportunity to meet with you and review all the papers is the only person who can advise you. Please go see a lawyer immediately. Your case has gone past the point where this is no longer a "do-it-yourselfer."
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Any attorney you meet with will probably tell you that you certainly may surrender the car. However, I don't know how this will affect your budget. An attorney needs to look at that, because if the car payment drops off your budget, are you opening yourself up to an accusation that you have surplus disposable income and can afford to pay some of the the debts that you are seeking to discharge?
As to purchasing your dad's car, a lawyer will ask you how much it will cost, and where is the money comming from to buy it.
Please don't be alarmed because I am telling you to see a lawer. This is a good example of the kind of routine thing that is usually no big deal, and I can usually handle it in about 60 seconds for my own clients, usually with just a quick phone call because I know who they are and I know the facts of their case. The reason I have told you to see a lawyer is because I don't have all the facts of your case.
Readers who want further information can refer to my Bankruptcy Guide at: http://www.debt-relief-bankruptcy.com/guide-new.asp
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| Comment | Thank you so much for the response. I will take your advice and contact my lawyer and use the discussion points. | ||
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Answers by Expert:
Los Angeles Bankruptcy Lawyer Leon D. Bayer
Expertise
Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/
Experience
Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.
Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.
Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.
Education/Credentials
B.A., J.D.
Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000
MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.
Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.
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