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Chapter 13 and new car

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bobsalas

Member
What is the name of your state? OR
We bought a new car in August 2005, then in September 2005 my wife lost her job, after missing one pay check we fell behind very fast and so filed BK Ch 13 in October under the old rules.
We decided to let the new car go back and told both our attorney and referee this. The car was listed as a debt, but not inculded in our plan.
About a month after filed we received a notice to sign so that we would voluntarily surrender the car. We signed it a sent it back. We started calling the recovery company every week for months to pick up the car because we wanted to get rid of it and save the $60 per month insurance we were paying. But they never picked it up.
We got a notice in June 2006 that the finance company asked that they be inculded in the plan, which would have been sweet, but the referee refused it.
When we get our statements from the refree each quarter it shows the car as part of the plan but no disbursements to them. My credit report also shows the car in our Ch 13 plan.
I asked my attornery about this and his is not sure what is going to happen at the end of the plan - do I return the car or is it mine, free and clear. He is a family law guy who got in on the big demand for BK filing in 2005.
Can someone give me their best guess what the likely outcome will be at end of plan?
 


Ladynred

Senior Member
do I return the car or is it mine, free and clear.
No it's not yours free and clear. You can't have the title until you PAY what's owed on the vehicle and you don't have to do THAT because the debt will be discharged and you have zero liability on it. Kill the insurance on the thing, it ain't going anywhere.

They cannot coerce payment by refusing to pick up THEIR property and then expecting you to pay to get the title. You might want to read this little article here:
http://www.stayviolation.com/2006/09/the_first_circu.html

This is why it's a mistake to hire a non-bankruptcy lawyer to do a bankruptcy. As nice as he may be, he obviously doesn't know the ropes well enough.
 

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