Legal Question in Bankruptcy in Louisiana

I filed chapter 13 bankruptcy to keep my vehicle and to try to pay back my creditors. After the Chapter 13 was approved in September 2011, in December after losing even more hours and being down to 20 hours per week for some weeks and fearing that my my hours may be reduced even moreso, I amended the Chapter 13 to surrender my vehicle and reduce my payments. The amendment was accepted in December 2011 and I surrendered the vehicle in January after making arrangements with the "recovery company". Now over a month later the creditor is now seeking a motion to remove the stay of the bankruptcy and wants me to pay over $11,000, which is over $2000 more than I even owed on the vehicle, plus the attorney fees on top of that!

They are trying to say that I owe more than the vehicle was even sold to me for in 2006, and the vehicle was a 2 year old USED vehicle then and cost $10,500, the entire contract with loan insurance, interest and 5 year service contract that is still in good until May 2013 would have cost just over $14,000. I paid from May 2008 until May 2011, and owed less than supposedly $9,800. I REALLY need some advice as to how to handle this. The company that I work for has lost the contract for the site that I was working at and I have had 28 hours of work in the past 3 weeks! Isn't what the creditor is now doing,in the least harrassment and possibly also fraud?!

I cannot even pay my utilities per paycheck, I try to pay 1/2 of my utilities per paycheck to keep from having them turned off. I really need some advice as to what to do and how to handle this, as my bankruptcy attorneys will not go to court for this unless I can pay the added fees that it will cost for them to argue against lifting the stay, BEFORE the set court date. Wasn't I supposed to have some kind of LEGAL protection from shark creditors once the Bankrutcy was Amended? Do I not have any protection from being fleeced by this creditor who already has the vehicle and notified me in January that they were going to place the vehicle for sale in February? And then added that I could buy it back from them if I came up with the entire amount due.


Asked on 2/17/12, 9:20 pm

2 Answer from Attorneys
Martha Amanda Mandi Lucas Mandie Seale Lucas

Your bankruptcy attorneys have to go to court with you as part of their fee unless your contract said differently. You must go to court. Bring all paperwork with you to show initial loan, payments, income and employment record changes since filing, etc-the creditor cannot lift the stay unless their has been some subterfuge or a failure by your attorneys to include everything necessary. In that case, you may have an action against them. It is highly unlikely that the court will allow your attorney to withdraw with a matter pending.

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Answered on 2/18/12, 4:51 am


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