Lemonlaw lawsuit

[Dc2024]

I filed Chapter 7 myself using the court’s self help program. I didn’t include my lemon law lawsuit because I’m surrendering the car and the only money, if any, is reimbursement for what I’ve already made in car pmts. I realize I can submit an addendum but do I have to include it? This car and it’s high payment are the sole reason I filed for bankruptcy!

[justbroke]

A lawsuit is an asset of the bankruptcy estate. Whether or not you can protect the proceeds will depend on which exemptions you are entitled to. If your court has a Pro Bono/Pro Se clinic, I'd go there and ask one of the volunteer attorneys on how to amend. This could put you into an asset case. It doesn't matter that it's reimbursement. Its may be property of the bankruptcy estate and subject to liquidation and distribution.

I'm wondering how the self-help program didn't have an item on the questionnaire mentioned pending lawsuits or "claims" that you could assert as a lawsuit that arose prior to filing.

Did you surrender the vehicle in the Chapter 7? Because now I'm thinking, why keep it if you say it's a lemon. It also makes me question whether you could have or should have done a 722 redemption. Is your Pro Bono clinic open weekly and are you able to contact them? Have you had your 341 Meeting?

[Dc2024]

Thank you for the great information! No I haven’t surrendered the car yet. I haven’t had my 341 meeting. It’s in a couple of weeks. What is a 722 redemption? Yes they have clinics open weekly. I went last week to ask about the possibility of dismissing the bankruptcy and the legal aid said no I couldn’t. I read that under certain conditions it was a possibility but she said no. It’s probably a bad idea anyway. I appreciate the help!

[justbroke]

They probably told you that a Chapter 7 debtor is not entitled to dismiss a Chapter 7 case once it is filed. A redemption is a motion to the court to purchase the vehicle at current fair market value. If it's a lemon, you could still get a so-called redemption loan that would replace the lemon with a replacement vehicle. There are a couple of companies that do redemption/replacement loans specifically for Chapter 7 debtors. Redemption loans could be complex for a Pro Se filer and should really be done as a first-day motion.

I would focus on the lawsuit not being listed in your Schedules and/or your Statement of Financial Affairs.

[Dc2024]

Thank you. I’m going to the courthouse on Monday to ask the attorney there how to amend my chapter 7. Not only is the car a lemon, I found out recently why my loan was so much higher than I thought it should be, the dealer added on 16,000 negative equity from a car I traded in. I bought the car from them and only had it a month. AND I found out why I was approved for this loan that I really couldn’t afford: my auto loan company, after many conversations about the amount of my payments, sent me a copy of my credit app- to my disbelief the dealer inflated my income 3.5 times my actual earnings. I really did get ripped off on this car deal.