Filed Chapter 7 and Included 2008 Vehicle

[MrTechnica]

So I included my 2008 vehicle in my chapter 7, The lender just picked it up last week but now Im receiving letters saying that the car will be auctioned off and I will owe the amount not recovered. When I filed my attorney said they could not charge me for anything if it was included in the chapter 7. Can someone confirm this for me, I ask because my attorney is on vacation and wont be back till next week. Im really worried about this, any help will be appreciated.

Thanks

[AngelinaCatHub]

Welcome friend. The bank is right as the deficiency will be charged to you. However, in that the collateral has been redeemed, if you are C7, that then can be bked. So in a sense, your attorney is right, but like most of them, they assume we all understand legaleze. B.S. on that. You will be alright, and hang in here as there are no professionals but many with experience. ‘Hub

[AngelinaCat]

So I included my 2008 vehicle in my chapter 7, The lender just picked it up last week but now Im receiving letters saying that the car will be auctioned off and I will owe the amount not recovered. When I filed my attorney said they could not charge me for anything if it was included in the chapter 7. Can someone confirm this for me, I ask because my attorney is on vacation and wont be back till next week. Im really worried about this, any help will be appreciated.

Thanks

Hi MrTechnica:

'Hub is correct, but in a convoluted way. Yes, you are responsible for any deficiency that arises after the vehicle has been sold at auction.

However, if you have already filed, and the vehicle included in that filing, the attorney is correct. The Automatic Stay comes into effect once the court mails out the notices to all of your creditors. That means any attempt this bank may be trying to use to collect this debt is topped in its tracks. They can proceed no further. Furthermore, they must not contact you in any way.

Now, that said, if you have surrendured the vehicle, the bank may file with the court, a motion to lift the Stay. That is routine, so that they can then sell the vehicle at auction. If that happens, do not be concerned. Any further action against you will not happen.

Your attorney can explain this better when he/she returns from vacation.

Good luck to you!

[liz417]

You'll be fine, just include in your matrix of creditors....

Good Luck!

[momof5]

You are NOT responsible for the difference of what they sell it for at auction if you have surrended this vehicle during a chapter 7 no asset BK.

AngelinaCat and Hub...your post is some what confusing. If they have surrendered this vehicle during their 7 then they are not going to have to pay any difference. They dont need to be on the matrix. This is a seperate issue.

[AngelinaCat]

You are NOT responsible for the difference of what they sell it for at auction if you have surrended this vehicle during a chapter 7 no asset BK.

AngelinaCat and Hub...your post is some what confusing. If they have surrendered this vehicle during their 7 then they are not going to have to pay any difference. They dont need to be on the matrix. This is a seperate issue.

Hi Momof5: I was trying to clarify 'Hub's post, and possibly used some confusing language myself. I was trying to explain all the 'what ifs'. I knew and acknowledged that the OP had surrendered the vehicle--which I thought had happened during the BK, but just stated the 'what if' scenario for others who might come along. I apologize if my post was confusing.

Thanks

[CindyLou]

its just a technicality. They have to, by law, send you this notice. Once they sell it in the auction you will get a statement of the deficiency balance, but at the bottom it will have a note that says something to the effect, "you do not owe this balance."