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Question
My 05 Nissan altima is being reposed on the 14th of this month. My payoff is still 19,000 after 19 payments because of late fees and all their other fees they include each month that hardly none of it goes to the actual payment. What I was wondering is if I can still file for bankruptcy after the repo, along with another dept I owe? And if I cant can the make me pay the payment that is set up for it now 424.00 or even make it higher. I'm in a really bad situation right now so I would really appreciate any help I can get on this matter.
From Oklahoma
Thanks,
Kari
Hi Kari:
After the repossession, they will sell the car in a "commercially reasonable manner." This is usually at auction. They will subtract the amount they received from the sale from all the amounts you owe - including repo fees - and arrive at a shortfall amount. This amount then becomes an unsecured debt, much like a credit card. They cannot make you pay the $424 per month at that point. However, they can sue you in court for the shortfall amount. If they win a judgement, they can collect it. State laws vary, but the collection techniques can include wage garnishment, attacking bank accounts, placing liens on real estate, and even taking personal property. They cannot take anything from you until the judgement is in place through a court proceeding. There is no guarantee they will even sue you for the shortfall, although due to the amount of the debt, you are in a category that is more likely to be pursued.
If you are set on bankruptcy, I would not do so until you absolutely need to. To me, this would mean waiting until they sue you, but BEFORE a judgement is entered. You should at least wait until you receive collection attempts on the final shortfall amount. This not only buys you some time, but ensures the entire debt related to the vehicle will be discharged in the bankruptcy.
Good luck. I hope this helps.
Regan
mbscompany@aim.com
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA - University of Minnesota
Past/Present Clients
(private)
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