Will my brothers vehicle be repossessed? 6 Answers as of January 07, 2011

My brother cosigned for his daughter to purchase a car through B B and T. This took place in 2004, she defaulted on the loan, she died 2 years ago, they got a judgment against my brother for the deficiency. I have learned that he did not file an exemption form when he was served with papers and they took his truck. I went to our clerk's office today and learned that they sold the truck for $1800.00. The balance on the loan including 4 or 5 thousand dollars in interest, is now 13,000.00. He went for over a year without any transportation, saved enough to buy a used car, and the bank found out about it and has served him again. He filed an exemption form. He bought the vehicle on October 27 and probably had the registration completed by Nov 1. He got the new papers in the latter part of Nov and filed his exemption form a couple of weeks ago. His concern now is whether or not they can take this vehicle. The clerk still had my brother's file out and was waiting on a call back from B B and T. She said they would decide if they wanted the sheriff to go back to my brother's. Can you give any advice as to what we should do? Thanks.

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Judith A. Runyon, Esq. Attorney at Law
Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
It is unclear as to whether you are asking a bankruptcy related question for your brother and his car or in response to the civil litigation that occurred.

If it is a bankruptcy question, please have your brother contact me to discuss.
Answer Applies to: California
Replied: 1/7/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I have no idea what state your are in. This does not sound like California to me. Where ever he is, he needs to file the claim of exemption.
Answer Applies to: California
Replied: 1/7/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
This is really not a bankruptcy question but bankruptcy could be solution for your brother to discharge that judgment and be done with it. However, if he claims the vehicle exempt then the Superior Court will not allow the creditor to take it and sell it. If the vehicle is taken he can still file bankruptcy urgently and get the vehicle back. With $13,000 debt just for the vehicle he may benefit from a Chapter 7 bankruptcy assuming his income is not too much and he has no other significant property. It sounds that your brother does not make much money and that the car is his only asset so Chapter 7 would certainly solve his judgment problem forever assuming there is no other issue that would prevent him from filing bankruptcy. He should certainly see a local bankruptcy attorney right away to explore that option.
Answer Applies to: California
Replied: 1/7/2011
Steven D. Keist, Attorney at Law
Steven D. Keist, Attorney at Law | Steven D. Keist
If the value of the vehicle is less than $5,000, no they cannot.
Answer Applies to: Arizona
Replied: 1/7/2011
Bankruptcy Law Office of Robert Weed
Bankruptcy Law Office of Robert Weed | Robert Weed
It sounds like he is doing the right thing, but why has he not filed a bankruptcy. Does he want to look over his shoulder at BBandT for the rest of his life?
Answer Applies to: Virginia
Replied: 1/7/2011
    Gus Johnson Attorney at Law
    Gus Johnson Attorney at Law | Gus Johnson
    Question of state law, I can only answer for South Dakota. in South Dakota if the vehicle is exempt and he followed proper procedure, he should be ok.
    Answer Applies to: South Dakota
    Replied: 1/6/2011
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