What will happen to a repossessed trailer in bankruptcy? 17 Answers as of April 05, 2011

If my trailer is repossessed, do I still have to pay on it if I file bankruptcy? Will they come take it away anyway so that I don’t have to pay on it?

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Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
Bankruptcy will wipe out any deficiency or balances owed on vehicles or trailers that are repossessed and you no longer own.
Answer Applies to: California
Replied: 4/5/2011
Gus Johnson Attorney at Law
Gus Johnson Attorney at Law | Gus Johnson
If the creditor still has a deficiency claim after its repossession, you can dischrge that debt in bankruptcy.
Answer Applies to: South Dakota
Replied: 3/29/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
If you file bankruptcy you can "surrender" it. This will relieve you of the obligation to make payments on it. Sometimes they don't come and pick it up. If it has little or no value they may leave it where it is.
Answer Applies to: California
Replied: 3/30/2011
Cohen & Kendziorra, P.A.
Cohen & Kendziorra, P.A. | Robert S. Cohen
The note on the trailer and the amount owed would be included in your bankruptcy. You would stop paying on it and indicate your intent to surrender it. The bank would either pick up the trailer prior to filing or wait to do so after you file bankruptcy and lift the automatic stay if you no longer want to keep it.
Answer Applies to: Florida
Replied: 3/30/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
If you have an item that was repossessed, and you file Chapter 7 Bankruptcy listing the creditor on the Petition, the debt that you owe on the item will be discharged and result in you not having to make further payments - provided that you qualify for a discharge.
Answer Applies to: New Hampshire
Replied: 3/30/2011
    The Law Office of John T. MacDonald Jr., PLLC
    The Law Office of John T. MacDonald Jr., PLLC | John MacDonald Jr.
    It depends on what chapter of the bankruptcy code you file under. It is best to contact a bankruptcy attorney to determine what chapter best suit your needs. I'm a bankruptcy attorney located in Lansing - feel free to contact me if you with to explore your options.
    Answer Applies to: Michigan
    Replied: 3/30/2011
    Law Offices of Geoffrey Nwosu
    Law Offices of Geoffrey Nwosu | Geoffrey Nwosu
    Filing Chapter 7 bankruptcy will help you to eliminate the unpaid amount on the trailer. You can only file chapter 7 bankruptcy if you meet the income qualification. This means that your income must be within the amount required to succesfully pass the means test. If you do not qualify, you may now file for chapter 13 where you may be required to make some payment towards your unpaid balance for a period of 3 to 5 years. Please consult a bankruptcy lawyer who will review your specific fifnancial situation to determine which option is best suitable for your situation.
    Answer Applies to: California
    Replied: 3/28/2011
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    If repossessed, your debt on the trailer may be discharged. The logistics of repossession will depend on the bank that is, whether you have to drive it somewhere or they will go get it. The extent of how much of your debt on the trailer is discharged depends on whether you qualify for chapter 7 and have other unexempt assets. You really should meet with a qualified attorney to discuss your situation. If you come to see us, I may be able to tell you during our first meeting whether any of your debt on the trailer will not be discharged.
    Answer Applies to: California
    Replied: 3/28/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    If you still have the trailer you can surrender the trailer in the bankruptcy petition and the bank will come take it and you will owe nothing because the balance left after the bank sells the trailer will be discharged. If the trailer has already been repossessed then you just list the debt as unsecured and it will be discharged. Either way you will not have to pay anything if you are eligible and file a Chapter 7 case. If you have to file a Chapter 13 case because of high income or other reasons then the result will be the same but you will have to make some amount of payments in the Chapter 13 plan depending on how much you make and the allowed expenses such as taxes, insurance, housing, transportation and charitable contributions.
    Answer Applies to: California
    Replied: 3/28/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    If you put your trailer in the bankruptcy, and do not intend to keep it, they will come and get it and you will not pay anything else.
    Answer Applies to: Alabama
    Replied: 3/28/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    If you surrender your trailer in bankruptcy, your obligation on the installment loan is discharged and you do not have to pay for it.
    Answer Applies to: Indiana
    Replied: 3/28/2011
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    Any deficiency balance will normally be discharged in bankruptcy.
    Answer Applies to: Colorado
    Replied: 3/28/2011
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    Filing a Ch 13 may help you regain the property. If the creditor hasn't sold the property yet, you can regain it by working out an agreement, with the court's approval, to repay the arrears and keep up with the current payments due.
    Answer Applies to: Washington
    Replied: 3/28/2011
    Bankruptcy Law Office of Robert Weed
    Bankruptcy Law Office of Robert Weed | Robert Weed
    Are you still in the trailer or have you moved out? Are you planning to move out? If the trailer is not worth much, the finance company sometimes never bothers to pick it up. That can leave you still owing the lot rent, because your trailer is sitting on the lot. I need to know more about what you are trying to do, in order to answer your question.
    Answer Applies to: Virginia
    Replied: 3/28/2011
    Law Office of Eric Ridley
    Law Office of Eric Ridley | Eric Ridley
    I'll assume you're talking about a chapter 7 bankruptcy. If your vehicle is repossessed under a ch. 7, the bankruptcy filing should eliminate any balance on your loan. And yes, it's likely that someone will come to repossess it.
    Answer Applies to: California
    Replied: 3/28/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    You do not have to make any further payments on your trailer if it is repossessed.
    Answer Applies to: California
    Replied: 3/28/2011
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