Filing Something In Court ...

[FeelingHopeless]

So, guys ... as I wrote last week ... last Tuesday our van was repossessed 3 months AFTER our Chapter 13 bankruptcy was discharged. The CU eventually released the van and the title ... but only after three days of listening to their verbal abuse and mounting mental anguish ... and only after I'd taken out a loan for a nice, reliable pre-owned car.

So today I met with our lawyer ... he taped our interview and took notes ... and took all the paperwork I had from them ... including the legal notice of repossession and the letter stating they had "incorrectly" respossessed the van and no longer had a lien on the property.

He said they're going to file something by Friday ... and not to get my hopes up ... but they're going to ask the court to have them pay for my new vehicle, since I had no intention of buying it and only bought it because I had to have a way to get to work.

So, I had a couple of questions that I didn't ask ... primarily because I didn't want to look stupid or greedy. What exactly is he filing? Are we filing something because there's some kind of "fine" for ignoring a bankruptcy discharge? I can't imagine a judge is going to make them pay for my new vehicle ... but do you think they'll be fined enough to cover the legal costs I'm gonna run up because of this? I just don't want to wind up IN the hole, you know?

Does anyone have an idea of what they're thinking? Or what I should be thinking?

[lrprn]

He said they're going to file something by Friday ... and not to get my hopes up ... but they're going to ask the court to have them pay for my new vehicle, since I had no intention of buying it and only bought it because I had to have a way to get to work.

SWEET! I love how your lawyer thinks, FH!

So, I had a couple of questions that I didn't ask ... primarily because I didn't want to look stupid or greedy. What exactly is he filing?

There's actually a part of the bankruptcy law that addresses violations of the automatic stay:
"Subsection 362(h) - An individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys' fees, and, in appropriate circumstances, may recover punitive damages." The folks at your credit union are going to regret what they did because bankruptcy judges take violations of the automatic stay VERY seriously.

Your lawyer is filing a case against your car lender for violation of the automatic stay and probably violation of the Fair Debt Collection Practices Act as well.

Are we filing something because there's some kind of "fine" for ignoring a bankruptcy discharge?

Sure enough! They absolutely violated an important part of the bankruptcy law. See that part of the law above

I can't imagine a judge is going to make them pay for my new vehicle ... but do you think they'll be fined enough to cover the legal costs I'm gonna run up because of this? I just don't want to wind up IN the hole, you know?

I don't see how you could possibly lose this case. Your lender will end up paying for your legal fees at the very least, and because you suffered damages (you were forced to go into debt to purchase a car right after bk discharge) your credit union will very likely end up paying you enough to pay off at least part if not all of your car loan. You may get damages against the credit union's attorney as well, if the violation of the stay occurred because their attorney goofed up.

Here's a good explanation of what happens when the automatic stay is violated by a creditor - http://library.findlaw.com/2000/Sep/1/131041.html . And here's a real-life filer who filed and won a 2005 automatic stay violation case with damages - http://archive.southcoasttoday.com/d...5/t16hh397.htm

You and your lawyer are in the driver's seat here, FH - roll down the windows and enjoy the ride!

[wayne-o]

sounds like your lawyer is looking out for you. Please let us know as this progresses.

[JollyGG]

Your lawyers logic makes sense to me. Who knows how it will turn out. I would guess you will recover some damages. If it is the full price of the new car that would be great. If not, anything you do get is good.

[FeelingHopeless]

Heck, yeah ... anything we get would be a blessing. I can't imagine the credit union would be fined the price of the car ... although it would be amazing if they were. My biggest fear was that we would end up in the hole with legal costs ... but after talking to you guys and researching online ... I think we'll be okay.

Our lawyer's associate said they would file by Friday and that I'd get a copy in the mail ... so as soon as it shows up, I'll tell you guys what it says. I asked him if we'd have to go to court ... and he said yes, we might have to go to a hearing. So as details come in, I'll share them here. Thank you guys SO much for being supportive. Last week was one of the worst weeks of my entire life. Coming here made it a little easier ... thanks.