Legal Question in Bankruptcy in California

Repossesion

This past year my spouse and I declared bankruptcy. Debts were discharged. On the bankruptcy we put our vehicle listed as wanting to renegotiate the loan on it. We never renegotiated the loan and fell behind in our payments. This past week it was repossesed. Will we be responsible for the balance owing?


Asked on 8/25/01, 4:37 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Repossesion

If you signed a reaffirmation agreement and it was timely and properly filed with the court, then you are responsible for the balance. Otherwise, you are not.

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Answered on 9/04/01, 1:29 am
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: Repossesion

Thanks for your email. It sounds as though the loan on the car continued through the bankruptcy, which probably means you had signed a reaffirmation agreement. This in effect "renews" the loan under the original conditions or the conditions of the reaffirmation agreement. If this is the case, then you still owe whatever deficiency balance is owed on the car, as it "survived" the bankruptcy.

If you did not sign such an agreement, then you at least have an argument that the debt was discharged with the bankrutpcy.

Best of luck, and please email or write if you have any questions.

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Answered on 9/04/01, 4:16 am


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