Legal Question in Credit and Debt Law in Georgia

Repossession After A Bankruptcy

I filed bankruptcy in 2003 due to my wife losing a high paying job in 2002. We went from a $200,000 home to living in a hotel. I purchased a auto (because we had none)and then traded it several months later for a bigger auto for our family of ''four''. I know stupid move. ''Hind-sight''. But,in all reality Nissan should've NEVER financed the amount they did on a stripped down 04 model and I should'nt have agreed to the High p'ment but we thought we were getting our life back in order. Wrong! My wife was laid off again, so due to this hurricane cloud above my head, I couldn't make this high p'ment and try to keep some kind of roof over my family. More info than you need but this is important to me. Nissan called and I took the auto to them almost 2 months ago. I havn't heard from them. What is going to happen next, exactly? Can I use the fact that they ''Knowingly'' financed an auto for clearly more money than it is worth... against them? Or, am I grasping for straws? What are ''MY'' options if ''any'' as my financal situation hasn't changed? I have ''NO'' family to turn to. Had I had family, I wouldn't be in this ''@#!&''. I would greatly appreciate the harsh truth from someone who knows what they are talking about. Thank you!


Asked on 12/08/04, 12:18 am

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Repossession After A Bankruptcy

It is not a defense to a car contract that you are not a good shopper.

They will likely sell the car and there will likely be a large deficiency, and you will owe it. Since you recently went bankrupt, you will not be able to discharge that new obligation for 6 years from the prior case.

In some cases you may be able to pay it in full over time through a Chapter 13 bankruptcy.

Taking the auto to them compounded a bad situation. That is the same as a repossession. Since you probably will have to pay for it anyway, it would have been smarter to have kept negotiating with them and hoping you could work out something to hold onto the car. A "voluntary repo" is ALWAYS a mistake unless as part of the deal you get a written promise not tocollect a deficiency (which would rarely be something any lender would do).

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Answered on 12/08/04, 7:48 am


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