Scared of being sued by auto finance after pro se ch.7

[bethgould]

I want to file a ch.7 BK pro se, but I'm scared that my finance company will try to sue me, and I'll end up needing an attorney anyway. I'm currently less than 30 days past due on my car loan, and am about ready to call them to come get it. I don't know if I should file BK before giving back the car, or wait to file until after the car's been to auction and I know exactly how much left is owed.

If I file pro se, I would file the 3A form and have the $299 filing fees paid by my 3/5 paycheck. I'm just so worried about being sued by the finance company! That just terrifies me!!!

[MSbklawyer]

I want to file a ch.7 BK pro se, but I'm scared that my finance company will try to sue me, and I'll end up needing an attorney anyway. I'm currently less than 30 days past due on my car loan, and am about ready to call them to come get it. I don't know if I should file BK before giving back the car, or wait to file until after the car's been to auction and I know exactly how much left is owed.

If I file pro se, I would file the 3A form and have the $299 filing fees paid by my 3/5 paycheck. I'm just so worried about being sued by the finance company! That just terrifies me!!!

I don't recommend that people file pro se except in the simplest of cases. But if you CAN manage to file pro se successfully, then stopping a post-bankruptcy lawsuit would be a no brainer for you. You just file a motion to dismiss and attach the bk petition and discharge order. Your state court judge will dismiss the suit. If not, you may then need a lawyer to get your bk judge to issue a show cause order to the finance company.

[bethgould]

That's exactly what my concerns are!

[MSbklawyer]

Why do you think the state court judge wouldn't dismiss? Most of them have seen bankruptcies before and they know what they're required to do.

[tigergem]

Actually, bethgould, if you know for sure that you are going to surrender the car, just fyi... even without the bk...from the time it gets repossessed to the time it gets processed and goes to auction and to the time they give you a deficiency notice (the amount left after auction) to the time they finally sue for the damages... could be a long long time. If ever. I have known people that surrendered a car and never heard another word from the finance company... 10 years after the fact!

Just list them as a creditor for the amount of your current known balance in your bk, and then if they try to sue, which they probably won't, just do as MSbklawyer said. Attach a copy of the petition and discharge to your answer for the suit.

[bethgould]

thank you everyone, and new question...

MSbklawer & Tigergem, thank you for your input. It is greatly appreciated.

Question about unsecured debts:
I have a collection agency calling about an online payday loan that I took out in late 2006 (borrowed $300, and the payments I made back to the PDL company in 2007 totals $780). Can I include them in my BK?

[MSbklawyer]

MSbklawer & Tigergem, thank you for your input. It is greatly appreciated.

Question about unsecured debts:
I have a collection agency calling about an online payday loan that I took out in late 2006 (borrowed $300, and the payments I made back to the PDL company in 2007 totals $780). Can I include them in my BK?

I always do. But check your local laws -- especially if you obtained the loan by writing a post-dated check.

And good luck finding an address for them. Those online payday loan places intentionally hide their addresses so they can't get notice of the bankruptcy. And even if you are lucky enough to find the address, it's always somewhere like Uzbekistan -- beyond the jurisdiction of the bankruptcy court. They'll blatantly disregard the stay and continue to call. The good news is that they'll NEVER sue you. That would expose them to American jurisdiction. They just continue to bug the hell out of you as long as they have a phone number for you.

Finally, after you discharge the debt, if you had plans to go to Uzbekistan (or wherever they're located) DON'T GO!! There's an urban legend in bankruptcy circles about an American who inadvertently travelled to the country where the payday lender was located and found himself in indentured servitude to pay the debt. Probably nothing to that, but you can't be too careful.

[bethgould]

not Uzbekistan, just Indian Tribal property in OK

It was Ameriloan, based in the U.S., so I should be ok traveling abroad some day. Yikes, how scary if true about the urban legend! Regarding the loan, it was all electronic. No actuall check was ever written since it was on online payday loan company.

I always do. But check your local laws -- especially if you obtained the loan by writing a post-dated check.

And good luck finding an address for them. Those online payday loan places intentionally hide their addresses so they can't get notice of the bankruptcy. And even if you are lucky enough to find the address, it's always somewhere like Uzbekistan -- beyond the jurisdiction of the bankruptcy court. They'll blatantly disregard the stay and continue to call. The good news is that they'll NEVER sue you. That would expose them to American jurisdiction. They just continue to bug the hell out of you as long as they have a phone number for you.

Finally, after you discharge the debt, if you had plans to go to Uzbekistan (or wherever they're located) DON'T GO!! There's an urban legend in bankruptcy circles about an American who inadvertently travelled to the country where the payday lender was located and found himself in indentured servitude to pay the debt. Probably nothing to that, but you can't be to careful.

[NHC]

It was Ameriloan, based in the U.S., so I should be ok traveling abroad some day. Yikes, how scary if true about the urban legend! Regarding the loan, it was all electronic. No actuall check was ever written since it was on online payday loan company.

...yep, good luck finding a physical address....I had one of these loans and found 4 addresses for the same one...so I put all four addresses on my creditor matrix...then, on their website there should be a 'contact us' section...which is usually email and pretty well hidden....so just to cover my butt, I sent them an email notifying them of the filing, the case number, and requesting a fax number....they sent me a fax number and I sent them a copy of my notice...easy peezy....they left me alone.