Legal Question in Legal Malpractice in California

I recently filed BK because of a bussiness i lost. My attorney recomended that I get a car to help maintain my credit before I file. I have 4 children and we bought a car that would fit all of them and would last us a while, since i knew i probably wouldn't be able to get a car after I filed. I finally filed a year later because of several other reasons. It was always very clear that I intended on keeping the car. He asked to try to to a reaffirmation agreement and see if they were willing to lower the balance. I called Ford Motor Credit to see if they would do that and they said "no". I told my attorney and i asked him if they could take the car and he said not as long as I kept making the payments. I kept making the payments and my car was repossessed 2 days ago even though i was current. Apparently they can repossess just because i filed for bankruptcy even if i am current on my payments and even though they have been taking my payments the last couple of months. This sounds like discrimination to me. I was told I was supposed to sign a re-affirmation agreement for the amount owed on the car. Neither my attorney, nor my lender advised me of this prior to taking my car. I am renting a mini van for $160/day now because of labor day. I can't afford to rent this for too long and I need to take my childrent to school. I will never be able to get another car and I was humiliated in front of my whole neighborhood at 3:00 in the morning!


Asked on 9/02/10, 10:02 am

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

When the BK law changed a few years ago, the "ride-through" option for motor vehicles -- i.e. to keep paying on the vehicle without risk of repossession -- disappeared, at least in California. Your attorney should have advised you of your options which were reaffirmation or surrender. Many lenders still continue to accept payment and not repossess, but under the BK law, they're entitled to do so. I don't know what you mean by "discrimination." If the lender took the car while you're still in BK without an order permitting it to do so, that might be a violation of the automatic stay. If that's the case, the BK court would be interested in hearing about it.

It sounds like you're paying way too much to rent a minivan, and you should seriously work on getting something you can afford.

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Answered on 9/07/10, 12:20 pm


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