Legal Question in Bankruptcy in California

Post Discharge Creditor Actions

HELP! How do I handle a creditor that has come to repossess a vehicle nearly one year after the debt was discharged in bankruptcy?

I filed a Chapter 7, no asset case approximately one year ago and I claimed my vehicle as an exemption. There were no objections raised regarding the exemptions or to any debts being discharged, nor did I enter into a Reaffirmation Agreement with the creditor. Now, after all this time, they are saying that they have right to the vehicle?

It was my understanding that unless objections were raised to exemptions and/or the discharge of any particular debt, those exemptions and/or discharge of debts would stand. What do I do?

I cannot afford to obtain professional counsel; therefore, any assistance you could provide would be most appreciated!


Asked on 6/30/03, 8:18 am

2 Answers from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Post Discharge Creditor Actions

A security interest in property does not disappear because of a discharge. If you are not current on the vehicle payments, the creditor may pursue its civil remedies once the bankruptcy case is closed.

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Answered on 6/30/03, 11:17 am
Mark Markus Law Office of Mark J. Markus

Re: Post Discharge Creditor Actions

If they are secured by your vehicle and you did not make the required payments, they have the right to repossess the vehicle. Bankruptcy does not change that. The only thing your discharge did was take away your obligation to pay on it. So, if they repossess your vehicle, you will owe them no money if there is a deficiency. By contrast, if you had entered into a reaffirmation agreement, they would be able to repossess the vehicle AND you would owe the balance due on the contract.

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Answered on 6/30/03, 11:22 am


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