Legal Question in Bankruptcy in Texas

Bankruptcy and auto loans and judgments.

First question: My husband and I are considering filing Chapter 7 bankruptcy. We have one vehicle that is paid for and one that isn't. We've been told that a separate agreement can be arranged with automobile creditors so that you can continue to pay for your vehicle and not lose it. Is this accurate, or is it possible that we might lose the unpaid vehicle by filing bankruptcy? Second question: Are legal judgments also discharged by a bankruptcy or are they handled differently? Third question: A creditor just had a judgment rendered against me and they have since been issuing documents to me indicating that they believe I have non-exempt personal property. I don't own real estate or anything beyond the contents of my home, and I was told that the contents of my home (furniture, electronics, clothing, etc.) are exempt from seizure. Are my personal belongings at risk, or is this a standard procedure that they use to scare people?


Asked on 4/22/99, 4:55 pm

2 Answers from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Bankruptcy and auto loans and judgments.

Exemptions are a mater of State law. I am admitted in Florida so I cannot advise on Texas law. Texas is quite liberal. If you tell me where you are, perhaps I can suggest an attorney for you. Jugments are dischargeable. The collection agency may have violated various Federal laws which could give you a claim against it. If i can give you additional assistance call me at 305-940-8080.

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Answered on 5/26/99, 7:26 pm
Mark Sullivan Mark R. Sullivan - Attorney at Law

Re: Bankruptcy and auto loans and judgments.

You may be able to reaffirm the debt on the unpaid auto. Usually, this can be done if you are not behind with the payments or will agree to catch up the payments. Second question: some legal judgments are dischargeable in bankruptcy, some aren't. Third, I don't know the exemption laws in Texas as I am licensed only in Montana. I recommend that you seek advice from an attorney experienced in bankruptcy matters in Texas. He or she can answer your specific questions and help you with whatever planning is necessary to file bankruptcy or help you find non-bankruptcy options. Good Luck!

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Answered on 5/23/99, 3:54 pm


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