Expert: Mark J. Markus- California Bankruptcy Attorney - 3/17/2010

Question
I have filed chapter 7 a year ago, attorney has sent for refimation, bank has never responded so i kept on driving the vehical untill they take it. attorney told me that i could not keep the car, fine.  bank has discharged me from the loan,  so do they still have the rite to take the vehical knowing they discharged me, the car was worth about $3,000  at most  I live in michigan and they have finally roposessed the car on 3-14-2010  and i have to pay $75 to get my stuf back thats if its all there. i was not hiding the vehical, why should i pay when the bank pays them.

Answer
The discharge of the debt on the vehicle has nothing to do with the lien the bank has, which remains after your bankruptcy is over.  If you do not make the payments required under your contract, they are entitled under applicable State law to repossess your vehicle.  You should not owe anything further to them on the vehicle if you did not enter into a reaffirmation agreement.  Recovering property inside your vehicle is another matter altogether and that is governed solely by State law.

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