Do I still need to pay my outstanding debt on a vehicle that has already been repossessed? 38 Answers as of July 02, 2013

I had a car repossessed (over 3 years ago) but still owe money on the loan. Since the car is no longer in my possession, would it be considered secured or unsecured? In chapter 7 filing how would I list outstanding debt on a vehicle that has already been repossessed?

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Law Office of Susan G. Taylor
Law Office of Susan G. Taylor | Susan G. Taylor
List it as an unsecured debt on schedule F.
Answer Applies to: Texas
Replied: 1/19/2012
Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
You don't need to pay this if you file for bankruptcy. Since you do not have the car it is not secured. You list the debt on Schedule F, the creditor on the matrix, and answer the questions on the Statement of Affairs - note no. 5. If you are preparing your own bankruptcy paperwork you need to read it ALL CAREFULLY and fill it all in. The Nolo Press books can be helpful. Take your time and study everything you can find in the books and also on the bankruptcy court website for your District. There is usually a section for pro se filers. Mistakes can cost you your discharge or worse. 1 in every 250 consumer cases is audited and an omission or mistake can potentially land you in prison.
Answer Applies to: California
Replied: 1/18/2012
Benson Law Firm
Benson Law Firm | David Benson
Assuming the collateral has been sold and the proceeds offset against your debt, the remaining balance on the loan will probably be unsecured. But your bankruptcy lawyer should be able to assist you with the specifics of your case.
Answer Applies to: Ohio
Replied: 1/18/2012
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
Debt related to a "deficiency" after repossession is considered unsecured and is subject to discharge in bankruptcy.
Answer Applies to: Indiana
Replied: 1/18/2012
Law Office of John C. Farrell, Jr.
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
Simply because the car has been repossessed does not mean that the money is not owed. The creditor usually sells the vehicle at auction and then moves forward with for the amount still owed plus all the other additional fees such as towing, storage and auction fees. This is called a deficiency action. Once the auto was repossessed the debt became unsecured.
Answer Applies to: Massachusetts
Replied: 1/17/2012
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If the car has already been repossessed, the deficiency balance would be unsecured, which is how it should be listed in your Ch 7. Good Luck!
    Answer Applies to: Michigan
    Replied: 1/17/2012
    Rhonda R. Werner Schultz, PL
    Rhonda R. Werner Schultz, PL | Rhonda R. Werner Schultz
    Since the creditor has already taken back the car, this would be unsecured debt.
    Answer Applies to: Wisconsin
    Replied: 1/17/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    First, whether it is secured or unsecured is different from money being owed. If it was repossessed, the car likely was sold for less than what was owed and that difference is still owed. You can file bankruptcy to discharge the balance which is still owed, and it would be listed on Schedule F as an unsecured dent as there is no longer any car to secure the balance left due.
    Answer Applies to: California
    Replied: 1/17/2012
    Kenneth A. Parker, P.C.
    Kenneth A. Parker, P.C. | Ken Parker
    It is considered an unsecured debt unless the creditor sued you, a judgement was entered and a lien filed. If no judgment/ lien was filed, you will list it on schedule F. It stopped being secured once the car was repossessed and sold.
    Answer Applies to: Georgia
    Replied: 1/17/2012
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    The remaining deficiency balance would be listed in schedule f as unsecured debt.
    Answer Applies to: California
    Replied: 1/17/2012
    Guardian Law Group PLLC
    Guardian Law Group PLLC | C. David Hester
    It would be listed as a debt that was repossessed and the remainder is unsecured.
    Answer Applies to: Utah
    Replied: 1/17/2012
    J.M. Cook, P.A. | J.M. Cook
    It was a secured note; until they repossessed it. They took the car, sold it and applied the sales price to the note. The amount of money still left over after applying the sales proceeds is the deficiency and yes, you are still liable for this debt. If you file a Chapter 7, this debt would be unsecured and you could discharge it.
    Answer Applies to: North Carolina
    Replied: 1/17/2012
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    Unsecured. If you are filing a bankruptcy case, stop paying on it.
    Answer Applies to: Illinois
    Replied: 1/17/2012
    Heupel Law
    Heupel Law | Kevin Heupel
    Yes, you have to pay the deficiency from the repossession. In a Chapter 7, you would simply list the creditor who financed the car. If that doesn't make sense, then you need to hire an attorney to make sure your bankruptcy is handled correctly.
    Answer Applies to: Colorado
    Replied: 1/17/2012
    The Law Office of Marvin Wolf
    The Law Office of Marvin Wolf | Marvin Wolf
    A secured debt, by definition, means that if you don't pay, the creditor has the right, as security for the loan, to take it back. Once it is taken back and sold, any remaining balance is no longer secured since there is no more asset as security, unless the security agreement gives the lender the right to go after other assets. An unsecured debt is one based on trust, rather than retaining any rights in the asset. Repossession usually does not extinguish the obligation to pay. The debt is still valid and can be sued upon, unless a bankruptcy is filed. After repossession, if no other security was listed in the agreement, the balance on the debt would usually be listed as unsecured in a bankruptcy petition.
    Answer Applies to: New Jersey
    Replied: 1/16/2012
    Ryan Legal Services, Inc.
    Ryan Legal Services, Inc. | Kevin Ryan
    The creditor must be listed because they are due the difference between what is contractually owed to them minus the net proceeds of the auction / sale of the vehicle. It is an unsecured debt.
    Answer Applies to: Ohio
    Replied: 1/16/2012
    The Stockman Law Office | Mary Stockman Esq.
    The remainder of the debt is unsecured.
    Answer Applies to: Florida
    Replied: 1/16/2012
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Once a repossessed vehicle is soldthe deficiency is owed as an unsecured debt. In a chapter 7 the debt would be listed on schedule F of the petition. This is the kind of debt that can be discharged.
    Answer Applies to: California
    Replied: 1/16/2012
    Law Offices of Robert P. Taylor
    Law Offices of Robert P. Taylor | Robert P. Taylor
    After the collateral is sold, the remaining balance is unsecured debt.
    Answer Applies to: California
    Replied: 1/16/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    You still owe the balance. In most Chapter 7's it can be discharged so long as you don't screw up the case. Your post indicates that you are about to screw up, as it tells me you plan to file pro se. Do not. I repeat that. Do not. Having a lawyer will make sure things are done right. It is money you cannot afford not to spend.
    Answer Applies to: Georgia
    Replied: 1/16/2012
    Paul Stuber, Attorney at Law
    Paul Stuber, Attorney at Law | Paul Stuber
    It is now at this point unsecured.
    Answer Applies to: Colorado
    Replied: 7/2/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You still owe on any deficiency. It is dischargeable in bankruptcy.
    Answer Applies to: Nevada
    Replied: 1/16/2012
    Law offices of John P. Brooke | John Brooke
    The debt would be unsecured debt and the creditor would be listed on schedule F.
    Answer Applies to: New York
    Replied: 1/16/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    If you don't have the car, it would be considered an unsecured debt. You can list it in your bankruptcy as an unsecured debt and you would not owe money on the car.
    Answer Applies to: California
    Replied: 1/16/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    It is unsecured now and you do not have to pay it if you are filing bankruptcy and can obtain a discharge.
    Answer Applies to: California
    Replied: 1/16/2012
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    It is unsecured, list it on schedule F.
    Answer Applies to: Florida
    Replied: 1/16/2012
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