Expert: Terry Leeders - 12/15/2007

Question
I have been in bankruptcy for 5yrs and was 4 months from getting my case discharged.  Well i caught up my payments unfortunately my case was dismissed anyway. Since my case has been dismissed since Sept...I was paid up current to Oct and Nov because I wanted to get my case re-instated.    The finance company repossess my car, I gave it back voluntarily.  When i called to find out how to get my car back I was told that on 12/11 they would give it back they did not post payments to my account for 7200 dollars and they also discovered that i had paid 22,000 on the loan and 7200 on the unsecured portion. The remaining charge off balance was 3700, so with the 7200 they were going to take the charge off amount and give the rest back to the trustee.  The next day 12/12 I get a call saying that i need to pay them 3700 because they sent back  7200 back to the trustee.  

I have two questions....is what they did legal?

If in fact they did send the money back to the trustee am i entitled to get that money back from the trustee to pay back my debts since I am no longer covered since my case has been dismissed?

I guess I want to know what i need to do or who should i talk to?

Answer
You should contact the trustee to see if they did in fact return that money.  If so, the trustee will refund any funds on hand after your attorney is paid and the trustee takes their allowed administrative fee.  As to getting the car back, you need to work with the lender on this.  Normally you do not have a lot of time, usually about 3 weeks.  They may be more forgiving here, because of your situation.  Your attorney may be able to contact them to work out an arrangement while the funds are being sent around.