Legal Question in Bankruptcy in Maryland

repo after chapter 7

2 years ago I filed a chapter 7 and it was all discharged, I included my automobile in my bankruptcy which I have been able to make the payments each month until now. If it would be reposessed now can they come after me for the unpaid balance since it was included in the bankruptcy and I did not reaffirm it. I lived in Maryland when I filed the chapter 7 but I now live in Pennsylvania.


Asked on 2/21/05, 5:07 pm

2 Answers from Attorneys
Carolyn Gilden Krohn Law Offices of Carolyn Gilden Krohn

Re: repo after chapter 7

No, any deficiency balance, since you did not reaffirm the debt was discharged in the bankruptcy. They may send you a notice for "informational purposes" after it's sold, but if they try to collect the debt from you they will be violating the law.

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Answered on 2/21/05, 6:15 pm
Michelle Stawinski Bouland & Brush LLC

Re: repo after chapter 7

The portion of the debt that has been discharged is discharged forever. They cannot force you to pay any debt that has been discharged. You, however, are not prohibited from voluntarily paying that amount. You may find that if you missed a couple of payments due to a temporary financial hardship but you know you will be able to make the payments in the future you can keep the car by agreeing to pay the lender the amount which was discharged (or a portion thereof). It is an option you should keep in mind, but do not feel obligated to pay any discharged amount back and do not agree to pay it back if you are just going to end up losing the vehicle (or could lose another asset such as your house) in the end.

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Answered on 2/22/05, 8:57 am


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