Hi - my name is XXXXX XXXXX X'm a Bankruptcy litigation attorney. Thanks for your question.
One quick thing - - was your chapter 11 dismissed?
yes it was dismissed I paid in $56,000 of $57,000 of the total. I was going through a divorce and missed the last payment.
sorry it was a chapter 13, NOT 11..
IF your chapter 13 was dismissed from bankruptcy, then things go back to the way they were before the filing - - which means that you would still owe the creditor the full amount of the debt due. Also, the statute of limitations is tolled against the claim while you're in bankruptcy so the creditor doesn't lose its window to pursue you for the debt.
In a case like this, the lender will sell the vehicle, and if there is a difference between what the vehicle brought in cash and what you owe the lender, that's called a deficiency. The lender can then sue for a deficiency judgment in that amount.
Thus, what the lender is telling you is likely correct in terms of its ability to sue you for the debt due AFTER you have been credit for whatever the vehicle brought.
The only real option would be to re-file a chapter 13 OR file a chapter 7 (liquidation). Since you didn't receive a discharge, you should be eligible to file either one.
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