How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

We filed BK in AZ in June of this year. Prior to filing the

Resolved Question:

We filed BK in AZ in June of this year. Prior to filing the BK, our Auto Loan Company had charged off our loan, however had not been successful at reposessing it. We still have posession of the vehicle. They did not show up to the meeting of creditors and our loan was included in the BK which has since discharged. They refused to enter a reaffirmation agreement because they said they legally could not since they had already "charged off" the vehicle. Since the discharge they have continued to contact us and try to repo the vehicle. My Husband filed a complaint against them with the BBB, Drive Time's response came in the form of still continuing to try to collect a debt. It had a baXXXXX XXXXXsted and said that as a courtesy they would credit us $100 off the balance for any inconvenience they caused by continuing to contact us. What are our rights as far as posession of the vehicle and is there any recourse we can take against Drive Time? Thank You Very Much for your assistance!!!
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.

Hello,


Thank you for your question. I am happy to assist you.



Your post indicates that your personal liability on the vehicle loan was discharged in the bankruptcy. However, a discharge does not void the lien on the vehicle. It is still secured by the lender. Therefor the lender is entitled to its collateral (the car) and not entitled to a deficiency judgment against you for the deficit on the loan.


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


Please click ACCEPT so that I can get credit for my work

Bonus and Positive Feedback gratefully accepted!


THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Customer: replied 8 years ago.
Even though they did not show up to the meeting of creditors and had written it off to $0 balance even before the BK? Also they did not file a claim for any assets the BK court was holding. If we do not have an outstanding debt with them, what debt is the collateral held on?
Expert:  Ellen replied 8 years ago.
Hello,


Yes bankruptcy is complicated.


A bankruptcy does not void the lien on the vehicle. The secured debt was not affected by your bankruptcy. Only your personal liability on the debt was discharged. The lender had no obligation to attend the 341. The lender is a secured creditor and now that the bankruptcy is completed, it can pick up the vehicle without bankruptcy court involvement.


Additionally, the fact that the creditor had written off a debt, is not a defense to a repossession.


I hope that this information has helped you.


If I can be of assistance in the future, please ask for FLAandNYLawyer.


Please CLICK ACCEPT so I can receive credit

Bonus and Positive Feedback = job well done.


THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Ellen and other Bankruptcy Law Specialists are ready to help you