Legal Question in Credit and Debt Law in Maryland

My name is Jim,and I live in Conowingo, Maryland. In May of 2009, my wife and I applied for a loan through a Delaware company for $750 to use on an emergency road trip, using our vehicle for collateral. On July 5 of 2009, I was injured on the job and have been unable to return to work since. My case is currently with a Baltimore attorney, and is currently pending disability. I currently have no income, and we have been using my wife's income to maintain our home and make an attempt to keep our bills paid.

Because of my situation, I have been unable to maintain a steady pace on my payments, and it has now fallen into default. This morning (December 10), I received notification that a repossession order has been issued for the vehicle, although the company has been fully informed of my current situation. The situation that has caused this has been something out of my control, but I recognize the need to fulfill a contract, although the date of injury occurred at a later time. Will I still be required to surrender the vehicle, or is there another option available? I am not looking to alleviate a legitimate debt, I just require the time necessary to honor my obligations. Any suggestions would be greatly appreciated; I really do not want to lose my vehicle.


Asked on 1/10/10, 12:36 pm

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Unfortunately, there may not be a non-bankruptcy remedy for you unless the title loan company agrees. You may need to file bankruptcy if you wish to stop the repossession.

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Answered on 1/15/10, 12:53 pm
Cedulie Laumann Arden Law Firm, LLC

It certainly would be difficult to make payments given your job loss, but regrettably hardship does not legally excuse someone from making payments on a loan or other contract. While bankruptcy does stop collection efforts (at least temporarily for secured debts) and may wipe out unsecured debt, it may not be the only option. Bankruptcy also costs money to file and if your primary concern is a $750 debt it might not be the best option. Sometimes creditors will agree to a loan modification in circumstances such as yours. You may want to ask for some type of modification.

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Answered on 1/16/10, 10:43 am


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