Legal Question in Bankruptcy in Maryland

Bankruptcy issue

We rec'd bankruptcy Chap 7 discharge in Jan 08. Since that time I have made several calls to the bank that holds the loan on my commercial truck to try to work out a settlement whereby I could keep the truck. They are holding a $50K CD and I have requested many times, as well as my attorney, that they send us copy of the paperwork effecting that hold. To date, they have not sent it. They have made no move to settle on truck either and I am not making payments. Why would they do this? What should I do? (Trustee exempted $11K of the CD.)


Asked on 10/16/08, 5:32 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Bankruptcy issue

I would need more information to determine exactly what is going on. If the bankruptcy case is still open, the automatic stay may still protect the truck, and the bank may have decided that it is not worth seeking relief. As to the CD, if it's at the same bank as the truck loan, they probably have a right of setoff allowing them to hold the CD (and to apply it to the loan once the automatic stay is over). I would be pleased to review the actual situation and advise, but your own attorney should be able to do that as well.

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Answered on 10/17/08, 10:29 am


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