Legal Question in Bankruptcy in Virginia

Deficiency and Bankruptcy

1.My husband and I are both in the Navy. If we file bankruptcy will it be reported to them?

2.If we have our car repossessed in our bankruptcy filing will we have to pay the repossession fees, storing fees, or the deficiency after they sell the car?


Asked on 11/18/00, 6:58 pm

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

Re: Deficiency and Bankruptcy

The bankruptcy will not be reported to the Navy (your employer) unless you owe them money, or unless you file Chapter 13 and have a wage withholding order to make your plan payments. However, that does not mean they will not find out, as it is a matter of public record, and information about bankruptcy filings is requested on some forms (including, I believe, background info forms for security clearances and the like). It is, however, illegal for employers to discriminate or retaliate against employees for filing bankruptcy.

If the car is repossessed after filing, you will not owe storage, repo fees, or a deficiency.

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Answered on 11/28/00, 10:09 am


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