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Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6423
Experience:  20 years of professional experience
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A friend of mine filed for bankruptcy last year and was issued

Customer Question

A friend of mine filed for bankruptcy last year and was issued a Chapter 7. He turned in his paper work to his attorney to reaffirm his car loan. His car was reposessed nine months after the bankruptcy and he had never missed a payment - next payment was two weeks away. The bank said they never received the reaffirmation. My friend has a copy of the reaffirmation but his attorney says he did not get it back from him and they do not have it on file. My friend wants to know if he has any further financial responsibility to the bank for the car and if he needs to continue to keep car insurance on it. He has tried to reach his attorney and left messages and emails but his attorney does not call him back.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Maverick replied 8 years ago.

As to further financial responsibility, the answer to your question is yes.


Even though your car has be repossessed, you are still liable for any and all cost incurred by the creditor. For example, I sell you a car for $6,000, you pay me $1,000 back and then stop paying me. So you still owe me $5,000


Then, I have the car repossessed at a cost of $350 and sell it at auction where I only get $3,000 for the vehicle.


Under these facts, you still owe me the difference between the 5k that you owed me on the note less 3k which is what I got at the auction. So you owe 2k.


PLus you owe all late fees, + $350.00, + the court costs and attorney's fees that have been awarded by the state.


He proabably no longer needs insurance on the car. Please click ACCEPT so I can get credit for my work. We can continue our conversation after this at no additional charge. Thank you for the opportunity to assist you.



Customer: replied 8 years ago.
My friend actually heard from his attorney the same afternoon as your response. His attorney said the opposite of what you said. He said there was no further financial responsibility. He told him they can not ask for payment on anything even if the car is sold for less than what he owed.
Expert:  Maverick replied 8 years ago.
Your attorney is correct if you listed the car note in the Chapter 7. It is as if no reaffirmation took place.