Creditor wants me to pay for his attorney

[eko976]

Hi everybody
I had discharge in chapter 7 18 months ago
Mercantile Bank is the creditor to whom I was paying a loan for a trailer
I just paid off my trailer and they told me I still owe the $1200 for attorney fees which they paid to the their attorney during my bankruptcy filling
They never attended 341 meeting nor I ever heard anything from their attorneys during the bankruptcy process
Mercantile bank is telling me that in our contract says:id debtor files for bankruptcy, the debtor has to pay for attorney fees
What now?

[df04527]

Do you have a copy of the contract to review it? I'm sure it's on the reverse side in some .2 size font -- I wouldn't believe what they said unless I saw it with my own eyes.

[buffetbuster]

I would make them produce the exact contract that you signed with your signature on it. More than likely, it will be hard for them to produce that.

[eko976]

the thing is
I signed a lease to buy agreement (buy at the end of lease for $1) with Commercial Leasing Company LLC
They obtained a loan thru Mercantile Bank
I signed contract with the first company, but never signed anything with second company

[keepmine]

Did you sugn a reaffirmation agreement? If not, I'd think your entire financial obligation would have been discharged.In other words, you had a "ride through".
Contact your bk lawyer.

[eko976]

I didn't sign anything
I am gonna stop by at their office this week to see what is going on

[AngelinaCatHub]

the thing is
I signed a lease to buy agreement (buy at the end of lease for $1) with Commercial Leasing Company LLC
They obtained a loan thru Mercantile Bank
I signed contract with the first company, but never signed anything with second company

So through a third party, they got a loan to loan you money for a lease/sale of a trailer. The responsibility is between the lender and HIS source of revenue, the bank. It is not your problem and you need to challenge them in small claims court to get you your Title if they are holding it. Otherwise ignore them until they do something about it. They cannot lien you unless they get a Judgment, and no one is going to sue for 1200. They are full of air. 'Hub

[HHM]

This is a very tough situation, and I hate to disagree with some of the others, but the issue is not that cut and dry.

You have 2 choices, pay the $1200 and get the title to the trailer.

Or, pay an attorney much more than $1200 to reopen the BK and determine if the charge is legitimate.

[AngelinaCatHub]

This is a very tough situation, and I hate to disagree with some of the others, but the issue is not that cut and dry.

You have 2 choices, pay the $1200 and get the title to the trailer.

Or, pay an attorney much more than $1200 to reopen the BK and determine if the charge is legitimate.

But why not wait it out HHM? See what they will do. An amount that small could be argued in small claims court to get the lien on Title removed if the Defendant (the bank) cannot come up with a suitable proof of agreement with the Plaintiff (our OP)? Just wondering about this if you could elaborate? 'Hub

[eko976]

I am just afraid they gonna take my trailer
one option is to go to the court, but I am sick of people not doing their jobs
why I have to pay (the court) in order to get something that belongs to me
but, I guess that is the way it works nowadays

[HHM]

But why not wait it out HHM? See what they will do. An amount that small could be argued in small claims court to get the lien on Title removed if the Defendant (the bank) cannot come up with a suitable proof of agreement with the Plaintiff (our OP)? Just wondering about this if you could elaborate? 'Hub

The issue here is one of practicality, not legality, for the most part.

I have yet to see a car/trailer lender law suit that was NOT able to produce the original documents. In any event, nearly every lending contract contains an attorney fee provision, so the issue is not whether the note will contain such a provision, it WILL.

The issue is whether, post BK, the lender can charge the fee. That is not so cut and dry. That is going to be an issue for the Bk court to settle, not necessarily small claims (or I should say, the debtor has a better shot at getting the result he wants with a BK judge than a small claims court judge).

Don't get me wrong, I agree, the charge is bogus, but it is not clear the remedy.

eko976, I would send a certified letter with a copy of your creditor matrix highlighting the trailer lender/servicer, copy of the discharge and demand release of the title.

Here is the other CATCH, eko976 said this was a "lease to buy". Leases SURVIVE BK if assumed. There is no reaffirmation process for leases, if you keep paying, you have assumed responsibility for the lease. If the debtor rejected the lease, then the creditor gets the item back. Did you list this creditor on schedule G (Exectory Contracts) because that is what this sounds like and state an intention to assume or reject?

[eko976]

it is lease to buy, but I have a contract with "Commercial Leasing Company LLC"
Mercantile bank is provider of loan and I didn't have sign any paperwork with them
also , we didn't list the trailer anywhere, we just agreed with their attorney to pay monthly payments if I want to keep it
that was done thru e-mails, we didn't sign anything

[AngelinaCatHub]

Thank you HHM. Seems like this little situation, is a tempest in a teapot, never the less, a complicated issue. Depending upon the situation, the OP might be able to compromise or give the unit back. This is really not fair for such a low amount, but the greedy little barristers (Hmmm did I spell that right) will wring a dollar out of a penny if they can. Thanks for your reply. 'Hub

[HHM]

it is lease to buy, but I have a contract with "Commercial Leasing Company LLC"
Mercantile bank is provider of loan and I didn't have sign any paperwork with them
also , we didn't list the trailer anywhere, we just agreed with their attorney to pay monthly payments if I want to keep it
that was done thru e-mails, we didn't sign anything

Why wouldn't you have listed the trailer anywhere...

Did you at least list it as an asset, did you list the leasing company in your petition.

If you did not at least list the leasing company, I am afraid you don't have much of a leg to stand on.

[eko976]

thanx to all of you for responses
I want to clarify something
1. The lease that I signed is thru the first company, second company(bank) is loan provider for them
when I signed the lease I wasn't told the payments are gonna go to the Mercantile Bank(I didn't sign anything with them
2. in my BK petition the trailer is listed as a lease, it wasn't listed as protected asset
3. the lease company is listed in the petition
4. I have the title which is secured by 2 parties(the lease company and the bank)
the lease company signed release of title, since I don't owe them anything. The bank doesn't want to sign anything, they think I have to pay their attorneys(after 18 months, what a shame)