Co-signer on vehicle repossessed after Chapter 7

[missjean]

Hello all! I have not been here in quite sometime and hope that everyone is well! I have a question that I hope someone can answer. I filed for Chapter 7 and was granted a discharge (finally!!) in January, 2011. At that time, I was the co-signer on my son's vehicle. BMW Financial was notified, and was faxed a copy of my discharge decree. The company that my son was working for had massive layoffs and my son's work schedule was cut to 20 hours per week. He had a very hard time finding another job, and was unable to keep up the payments on his car (as well as his other bills). As a result, he filed for bankruptcy. He was granted a discharge in November, 2010. Once again, BMW Financial was notified, and an appointment was made for the vehicle to be picked up. Today, nine months after my discharge, I got a call from a collection agency indicating that I am responsible for the balance of payments due on the car. The representative (allegedly) was unaware that I had also filed for bankruptcy and asked that I fax copies of both discharge decrees. BMW Financial was definitely aware of our filings and I can't understand why the account has now gone to collection!! Am I in any way responsible for any payments on the vehicle? Thanks for your help!!

[DebtEnder]

If BMW was listed on your list of creditors then I would simply fax them the copy of the discharge order and advise any further contact will be a violation of the discharge injunction. It was wise to make sure they were notified on you initial filing. Odds are this collections simply bought the bad debt from BMW, or they did not inset your info in your sons file. In any case no your not responsible for it.

[missjean]

Thank you so much for your fast reply! I didn't think that I was responsible for any deficiency, but it is nice to hear it from others!!

[AngelinaCat]

Simply send a copy of your Discharge Order--tell son to do the same--along with a Cease and Desist letter. Both of you must do this, you cannot put your letters in the same envelope in this case. Sorry.

Once you and your son have those letters ready to go, mail them Certified with Return receipt. It will cost about $5.60 for each of you, but will be well worth it when you get the green card with someone's signature on it.

File those cards in your files and do NOT lose them.

That should take care of the matter. Good luck to you!

[justbroke]

And if they keep bothering after you have followed AngelinaCat's advice... then you should speak with your Chapter 7 attorney to pursue a contempt order. There is no way that BMW did not know about the bankruptcy. They are a sophisticated creditor and have no excuse for selling it to or sending it to collections.

[bcohen]

Even if the actual reposession and/or sale took place after your bankruptcy, the potential liability under the loan contract which you cosigned was discharged in your BK. So no, you do not (legally) owe the debt. As everyone else here said, you should send a cease and desist letter, accompanied by a copy of your discharge order, and see if these people contact you again. If they do, then you should speak to your attorney about bringing suit for repeated violation of the discharge injunction.

[missjean]

Thank you all for your great advice! I have faxed copies of both Discharge Orders to the collection agency and will let you know what happens next. Thanks again for your help!

[AlmostAmos]

Fax them to BMW (financial?) also.