Chapter 13 Question (Repoed Car)

Date: Fri, 05/29/2009 - 23:12
Submitted by Carloscda38 on Fri, 05/29/2009 - 23:12
Posts:
Credits:
[Donate]

My car was recently repoded for the 2nd time being that I've been laid off longer than expected. I was only down 2 payments, the rep with honda finance who was rude said I have to send those 2 payments in to bring loan current. I told them no problem as soon as the money is deposited in my account (which would take another 2 days) you got it.
That was in the afternoon, that night I see my car going down the street!
I only have 1yr left on the car they said I have to pay 7k to get it back. I also only have 4k in debt.
Now will filling 13 get the car back & what type of payment plan might i be on? The note was $425mo/$220ins

Thanks in advanced!


Filing BK would stop them from further collection activity. If you filed before they took the car, then they wouldn't be able to repo. But once they physcially have possession of it, filing BK won't do much and you probably won't get your car back. It will just keep them from suing you for a deficiency balance.

In certain circumstances, a BK judge can issue what we call a "cram-down" order and make them give your car back to you. However if that happens, you'll most likely have to resume the regular monthly payments. Your BK attorney can try to lower the payments, but the creditor can object to confirmation on the grounds that the car is rapidly depreciating and thereby injured by an inadequate payment plan.


Submitted by DebtCruncher on Sat, 05/30/2009 - 10:35

DebtCruncher

( Posts: 2293 | Credits: )


You will have to file BK before the 21-day redemption period after they took your car. After the redemption period, they're free to sell it and there's no way you'll get it back.

Be aware too, that in the long run you'll be paying your attorney and trustee between $3-5K just to go bankrupt to get your car back. Also since you seemingly have so little debt ($13K total ?), you might not be eligible for a 13.

Other problem too, that I just realized after re-reading your post, is that you need to be employed to file a chap 13. Without any current source of income to rely on, the court won't confirm your plan.


Submitted by DebtCruncher on Sat, 05/30/2009 - 14:13

DebtCruncher

( Posts: 2293 | Credits: )