Legal Question in Bankruptcy in Virginia

Repossession of Van

My husband and I have filed for bankruptcy and our meeting of creditors is scheduled for December 23, 2008. I added our van to our exemptions, which we still owe $8,000. We cannot afford to keep it. My question is: A payment is due Friday. I cannot pay it. Can they take my van or do I have a little more time to get another call? Do I need to go ahead and return the van? Is there more forms that I need to fill out?


Asked on 12/03/08, 9:44 pm

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

Re: Repossession of Van

The exemption only means that the trustee can't sell it unless it's value (less liens) exceeds the exemption. If you don't make the payments, the creditor can get relief from the automatic stay and repossess the van. If this is a Chapter 13, you may be able to reduce the amount you have to pay down to the value of the van if you owe more than it is worth, reduce the interest rate, or stretch out the payments, but you can't do this in a Chap. 7.

If you do not have a bankruptcy lawyer, get one now. You should not be doing this without counsel. We practice bankruptcy law throughout Virginia, so feel free to contact me if you have further questions or desire legal representation.

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Answered on 12/03/08, 10:12 pm


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