Legal Question in Bankruptcy in Massachusetts

Re: Repo after bankruptcy discharge

In the petition there is a secion called statement of intentions, check and see what is on that form. If you intended to reaffirm then it should state "reaffirm" Reaffirmation means that you agree to pay purusant to a reaffirmation agreement or if none your original terms. An auto if not owned outright is usually a lease or a loan, and is a secured item, meaning if you want to keep the asset you must pay. If you had an atttorney, you may want to contact that attorney to advise him or her of your current situation. If you are not paying the creditor, they can repo the vehicle. Whether or not they showed up at the 341 meeting does not really have any impact. If you want to keep the vehicle you have to make arrangments with the creditor to pay and you need to make sure you can keep it current.

Re: Repo after bankruptcy discharge

Secured debt (like a car or mortgage) cannot be discharged if you want to keep the car. They have rights to at least the amount that the car is worth, or to take the car itself.

You generally have 4 options that your bankruptcy attorney should have explained to you. You can either:

1. Catch up on the arrears and keep making the payments on time if you want to keep the car without making any promises (though this does not work so well under the new law)

2. Reaffirm the debt, or PROMISE to continue making the payments. Then you are liable for the full amount of the debt after the bankruptcy as well.

3. Redeem the car, or pay to the creditor only the current value of the car, and they must release any claims that they have to it and you would own it outright. You either have to come up with the money yourself, or there are companies who would give you a new loan just for the value of the car. There are some restrictions on this option, such as what the car is used for.

4. Surrender the car, ie let the creditor come and take it, and you would not be responsible for anything else.

You make this selection on one of the forms in your bankruptcy petition. The creditor need not attend the 341 meeting, it has no bearing on their rights. It sounds to me like you chose the surrender option. If so, yes, they can come and take it any time, including years after the discharge.

If you e-mail me with your case number I may be able to give you a more definitive answer.

Regards.