What can I do if my chapter 13 was dismissed and attempts are being made to repossessed my car despite me making payments? 15 Answers as of February 10, 2014

I filed chapter 13 in May 2013. It was dismissed in December. As soon as I knew I contacted my bank to begin paying back on car (2012 model). I recently made the first payment, which was short $300 because I just didn't have it but the payment itself was over $1000. The bank has now contacted me to advise they are submitting papers to have the full amount due because I broke the agreement. The rep stated that I could surrender the car or face repo if it is approved. I know if the car goes to auction, I will owe at least 15k. What legal options do I have on the balance owed if that happens? Can I make payments? Will I have to pay back the full difference? Is there legally anything I can do to protect myself at this point? My original bankruptcy was dismissed at my choosing so I am unable to file again for another month or so. Thank you in advance.

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Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
They are allowed to repossession if not absolutely current.
Answer Applies to: New York
Replied: 2/10/2014
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Not much to do. If it is repossessed you will have to bail it out to get it back.
Answer Applies to: California
Replied: 2/10/2014
Faletti Law Office PC | Harold Faletti
When you refile your bankruptcy, and if you still possess the car, you must file a motion to continue the automatic stay. If the car is repossessed and the collateral is liquidated before you refile, the debt can be discharged in the bankruptcy.
Answer Applies to: Colorado
Replied: 2/10/2014
Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
Unfortunately, the lender is within its rights to take steps to repossess a vehicle when the payments are delinquent. There are state law procedures that must be followed, and those vary from one state to the next. The lender is not, however, obligated to work with you on your time table to get payments caught up. As far as filing another bankruptcy case is concerned, if there was a Motion for Relief from Stay filed by a creditor before your voluntary dismissal then you are correct there is a 180-day waiting period before you may file again. If there was not such motion filed then you might be able to refile sooner. I suggest you consult with a bankruptcy attorney to review your option.
Answer Applies to: Colorado
Replied: 2/10/2014
Garner Law Office
Garner Law Office | Daniel Garner
Based on the facts you stated, you are clearly in default and have no defense to a repossession. If you can't file another bankruptcy yet, then you have no choice but to surrender the car. You should wait until the car has been auctioned so you know how much a deficiency is left. Then you can attempt to negotiate a settlement with the creditor and, failing that, you can file another bankruptcy to get rid of the deficiency.
Answer Applies to: Oregon
Replied: 2/10/2014
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    You can try another 13.
    Answer Applies to: Florida
    Replied: 2/10/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Other than suggesting you contact a local credit union to see if they might be willing to refinance this vehicle, there is so much about your situation that is unexplained that I do not feel comfortable offering you an easy "one size fits all" explanation of how to solve this problem.
    Answer Applies to: Nevada
    Replied: 2/10/2014
    Law Offices of A. J. Mitchell, LLC
    Law Offices of A. J. Mitchell, LLC | A. J. Mitchell
    You can consider refiling. Strongly recommend that you retain a bankruptcy attorney in this regard.
    Answer Applies to: Georgia
    Replied: 2/10/2014
    Bushhorn Law Offices | Thomas D. Bushhorn, Esq.
    Several options exist. Conversion to a 7 (depending upon previously filed bankruptcies), refiling another Chapter 13 or file a Chapter 7 and surrender the vehicle. The procedural timelines related to bankruptcy are sometimes complicated so it is advised you seek legal counsel.
    Answer Applies to: Indiana
    Replied: 2/10/2014
    Kenneth A. Parker, P.C.
    Kenneth A. Parker, P.C. | Ken Parker
    You may be able to file a Chapter 7 and wipe out that debt.
    Answer Applies to: Georgia
    Replied: 2/10/2014
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    If the car is repossessed and sold and you end up owing a deficiency, it will be up to the bank whether or not to accept payments. Yes, you will have to pay the full difference. Besides the car was there another reason you filed Chapter 13 instead of Chapter 7? If not, you could file Chapter 7 and have the deficiency discharged.
    Answer Applies to: Utah
    Replied: 2/10/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    You have several options regarding the vehicle if it is repossessed/surrendered. You may reach out to the lender and ask to make a lump sum settlement for less than the amount owed. Some lenders will accept an offer. You may also make payment arrangements with the lender although the lender may file suit and seek to garnish your wages if the payment amount is insufficient to them. Without knowing the reason for your chapter 13 bankruptcy filing as opposed to a chapter 7 bankruptcy I cannot advise you whether you should file either chapter 7 or chapter 13 after waiting for the required amount of time to pass.
    Answer Applies to: Indiana
    Replied: 2/10/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You must get current. You cannot make payment on arrears. If you are not behind on your payments then they cannot repossess.
    Answer Applies to: Nevada
    Replied: 2/10/2014
    Moore Taylor & Thomas PA
    Moore Taylor & Thomas PA | Jane Downey
    You might consider filing bankruptcy again.
    Answer Applies to: South Carolina
    Replied: 2/10/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You can file a chapter 7 bankruptcy to get rid of the debts if you qualify, since you will be liable for all the money owed after the auction of the car.
    Answer Applies to: New York
    Replied: 2/10/2014
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