Expert: Michael Brotherton - 1/31/2009

Question
hi, my husband and i filed bankruptcy in April of 08. my husbands job was down sizing and he was had to take a cut in pay.i also work part time.
our lawyer said not to reaffirm the car or home.just in case something happened down  the line and  we had to give back the car or home. we would not be liable for any money owning after the sell.we have no problem paying for the house.but the payments on the car was hurting us.
we had a 03 car, at the time we were able to make payments up to july.i was making some payments but not all at once,around December it was getting worse with making the payments and my other bills.
i called to see if we could work out some kind of arrangements for the  payments that i could afford and when things got better i would start making the regular payments  but they would not take any arrangements,at that time i was almost 3 payments behind.i was getting to where i was getting to stressed,depressed worrying want to do next so after a long hard talk we decided to have them come and get it.
i got a letter this week saying they sold it and we owe a balance and they want us to call them to make arrangements for payments.my question is since we filed bankruptcy and did not reaffirm with them, can they come after us for the balance owning? we have nothing i bought a car  for 500.00
and i live in a mobile home that is almost 18 years old and its not worth much. i will look forward for your reply.

sue

Answer
No, You do not owe them for the deficiency. You will need to make them aware that you did not reaffirm the debt.

Write them a letter and send by certified mail informing them of this and make it clear not to contact you further concerning this matter. If you have a schedule of debts and discharge papers for the bankruptcy you may want to send a copy of this as well. They should cease all contact. If they persist you may file a complaint with the US Bankruptcy Courts for violation of the no contact rules.