Legal Question in Bankruptcy in California

Filed Bankruptcy, car totaled in accident, other driver at fault

A driver ran a red light and caused

a head on collision last week

totaling my car that was

listed in chapter 7 bankruptcy.

I've been paying payments, but

never signed a reaffirmation of the

debt. It is listed in personal

property on the bankruptcy, and in

brackets it notes (to be retained)

under the type of car. The car

company received a notice of

bankruptcy along with all of the

creditors and shut off access to

pay online and stopped sending

statements. I was able to have

them start sending the statements

again, but I never singed a

reaffirmation of the debt. Can I call

and have them pick up the totaled

car and not be burdened by the

rest of the debt that is owed on the

car? Is the car still considered to be

part of the bankruptcy? Thank you

for your help!


Asked on 12/23/08, 2:26 pm

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: Filed Bankruptcy, car totaled in accident, other driver at fault

The car is still considered to be part of the bankruptcy estate, meaning the creditor probably should not pick up the car unless it gets court permission. The law does not require the creditor to pick up the car. If you do not reaffirm, the debt owed on the car will be discharged. Once there is a discharge, the creditor may pick up the car if it wants to. What do you do if the creditor does not want the car? You will not be able to salvage the car because you do not have title. You should offer the car to the creditor in writing, and tell the creditor if it does not pick up the car within 30 days you will have to destroy the car. You may then have to take a cutting torch to the car and cut it up into little bits in order to scrap it. You could also try dragging it out onto the road. The police will get so mad that this piece of junk was left on the road, they will have it towed to a storage yard where it will be put up for auction. If you choose this route, there is a good possibility you will be fined for violating several Vehcile Code Statutes.

Read more
Answered on 12/23/08, 8:13 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California