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Dismissed Bankruptcy

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tinkerbelletx

Junior Member
Texas/ I was in a Chap 13 plan for about a year until the car included in the plan was stolen. The car was recovered, but was damaged so badly my insurance company totalled it. They paid about a third of what was owed on it. Under advisement of my attorney's office, I stopped making the monthly plan payments in order to save for the fee to conver to a Chap 7. When it came time to do the conversion, I was informed by the attorney's office that the fee had been raised. I had no way to get the amount needed to do the conversion and this was a week before my scheduled dismissal date. My Chap 13 was dismissed. I understand I have to wait 6 months before I can file another bankruptcy. Except for the car, all other debt was unsecured and was primarily medical bills. However, I am now getting monthly statements for the balance of the loan for the car I no longer have. I am unable to pay this since I am now making payments on a replacement vehicle. What do I need to do until I can file again? Do I ignore the notices? Do I attempt to make any sort of payment, no matter how small? I do not intend to return to the attorney's office I was using because most of the time I dealt with only paralegals and never knew who I was going to see on any of my appointments; no one there ever seemed familiar with my case. Any guidance is appreciated.
 


spoiler

Member
If you are going to file for chapter 7 and you know you have a good chance of your chapter 7 being accepted do not make any payments.
 

tinkerbelletx

Junior Member
This lienholder can't garnish my wages for the balance of this loan or perhaps have my current vehicle seized and sold for payment can they?
 
A

absconder

Guest
Next time buy GAP insurance from your insurance co and not from the dealer. Youll save 60% on the cost.
 

spoiler

Member
What absconder is refering to is an insurance policy that you buy to protect you incase your car is totaled and your insurance company will not pay for what your loan amount is on the car. You buy gap insurance so that you will be payed for the remaining balance. What absconder doesn't understand is that those that are in bankruptcy or needing to file do not have extra money for gap insurance.

This lienholder can't garnish my wages for the balance of this loan or perhaps have my current vehicle seized and sold for payment can they?

tinkerbelletx you live in texas. That is a good thing when it comes to wage garnishment. Unless you owe child support or the government your wages can not be garnished. As far as your car goes...I am not sure but my guess would be that they will not be able to take your other car.
Maybe someone else can add some advice.
 

tinkerbelletx

Junior Member
Thanks for clearing that up, I have never heard of gap insurance... Allstate never offered it to me. If anyone has an answer to the second half of the question, I will rest easier.



I just Googled GAP insurance...seems like it applies to the purchase of new vehicles. Mine was used, it was being financed, but it was 4 years old when I drove it off the lot.
 
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