That was fast!

[damooster]

I have three Navy Federal accounts that I'm past due on: a motorcycle loan, a personal loan ($900) and a Visa credit card ($1000). I am a little over three months past due on all of them and my motorcycle was repo'd a few days ago.

I retained a lawyer in February for Chapter 7 and still owe him $1600. I was planning to have all of his fees paid by the middle of June (have not paid him anything yet, other than the $300 fee he required up front for the filing fees), but today I found a USPS slip on my apartment door saying that I have a certified letter from Navy Federal. I won't know for sure what the letter is about until tomorrow, but I do have some questions:

1. I read the sticky thread about judgments and it seems like Navy Federal is moving VERY fast. Has anyone else here dealt with them, and if so, were they this fast? Like I said, I'm only 3 months behind on the accounts I listed.

2. I doubt this is about the motorcycle since they just repo'd it because Virginia law states that I have 15 days to get the account current and I can get my bike back (but I'm giving it up in the bankruptcy). Unless the letter is telling me that they have the bike, but I doubt it (I voluntarily met the tow company and handed them the keys)? Or now that I think about it, does this normally happen with repossessions (i.e. sending letter stating what has happened)?

3. I really want to avoid having a judgment placed against me, particularly because I want to keep my employer from knowing about my upcoming bankruptcy (if my wages are garnished, I will have to inform them to stop garnishing wages because I'm filing for bankruptcy) because I'm up for a promotion later this year. If there is a summons waiting for me at the post office, I'd like to file BK before any judgments are made. Do you guys think I still have enough time (if I pay lawyer all fees by June) or is it cutting it too close? I'm a no asset case; maybe I could file pro se?

Thanks for listening and for any advice you can provide.

[StartingOver08]

It is probably a letter regarding the bike - they are required to send you notice in accordance with your state law.

Check out this link for general info and then google the law in your state for specifics:

Selling the Vehicle

Once your vehicle has been repossessed, your creditor may decide to either keep it as compensation for your debt or resell it in a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if the car will be sold at public auction, state law may require that the creditor tell you the time and place of the sale so that you can attend and participate in the bidding. If the vehicle will be sold privately, you may have a right to know the date of the sale.

In any of these circumstances, you may be entitled to “redeem” — or buy back — the vehicle by paying the full amount you owe (usually, that includes your past due payments and the entire remaining debt), in addition to the expenses connected with the repossession, like storage, preparation for sale, and attorney fees. Or you could try to buy back the vehicle by bidding on it at the repossession sale.

Some states have consumer protection laws that allow you to “reinstate” your loan. This means you can reclaim your car by paying the amount you are behind on your loan, together with your creditor’s repossession expenses. Of course, if you reclaim your car, your future payments must be made on time, and you must meet the terms of your reinstated contract to avoid another repossession.

Any resale of a repossessed vehicle must be conducted in a “commercially reasonable manner.” Your creditor doesn’t have to get the highest possible price for the vehicle — or even a good price. But a resale price that is below fair market value may indicate that the sale was not commercially reasonable. “Commercially reasonable” may depend on the standard sales practices in your area. A creditor’s failure to resell your car in a commercially reasonable manner may give you a claim against that creditor for damages or a defense against a deficiency judgment.

http://www.ftc.gov/bcp/edu/pubs/consumer/autos/aut14.shtm

[AngelinaCatHub]

"Starting over is correct" Your letter will say it was a "voluntary" surrender and yes you did right to give the keys over. I think they MUST sell it car or mc and you will be held libal for the deficiancy and could be sued. A judgment is a bad thing, but could be discharged in your bk. Still you should file before it goes that far. This gives the automatic stay and will stop action against you. If you have not paid for three months, and you intened to pay your lawyer, where did the money go? You best pay that lawyer and proceed as three months is on the bring of action. 'Hub

[catleg]

It's most likely a demand letter for one of the debts, maybe the deficiency for the motorcycle. It could be a summons, if you state allows service by certified mail (mine does). You can probably keep them at bay by either agreeing to payment plan and making minimal payments until you're ready to file or, if it's a lawsuit, be prepared to file an answer and then an objection to a motion for summary judgment, if you're serious about filing that can probably buy you some time. You'll know more when you pick it up.

I think you'd probably be better off stalling the lawsuit pro se while saving up for the bk attorney rather than rushing the bk to do it pro se and possibly make mistakes. (assumes you actually get a good bk attorney)

[damooster]

Thanks for the replies.

The letter was about my motorcycle. The letter says I have 10 days to pay the balance in full or it will be auctioned off. I already knew that would happen, but now I'm wondering: how fast is this process usually? Are they going to immediately auction it off once the 10 day deadlines has expired, or is there generally some time i.e. do they wait to auction it off at an actual auction or do they do auctions as they get individual vehicles?

Just wondering if I will have some time before they sell the vehicle and then how much time after that will they file for a judgment. I'm clueless about the repossession process.

Thanks again.

[StartingOver08]

Google your States vehicle repossession laws so you have a firm timeline.