I filed for and completed a backruptcy. Per my attorney my car was not to be included.?

Question

I called the lein holder and they tell me it was included and that they received the documents. I stopped pay on the car. a year later I try to get my title and it shows a lein.

My attorney is no longer practicing in this state, NY? Any ideas on what my rights are?

Answer 1

You have to list all creditors in the bankruptcy but a car loan is a secured debt so unless the lender wants to make deal, you still have to pay off the car loan. If they reposessed it, then you may have been able to include any remaining balance (the difference between the current value of the car and the loan) in the bankruptcy.

But you won't get the title free and clear. I'm pretty much surprised you still have the car. You better talk to your lawyer on Monday.

I caught the lawyer note after the fact, if you can ask him, still do, otherwise you'll have to talk to the lender and straighten things out.

Note you still owe the money on the car.

Answer 2

Better call the lawyer. Sounds to me like the car would have had to either 1) be surrendered to the bank, or 2) payed according to the terms the bankruptcy court said.

In most cases you cant just keep a secured asset that you owe money on - with the exception of a home in many states.

Answer 3

If the car loan was included in the bankruptcy, the car should have been surrendered as directed by the court. If you still have it in your posession, and want to keep it, you'll need to acknowledge the debt and pay it off. If you don't want it, you should review your bankruptcy documents and see what you're supposed to do about it. You may need another attorney to get the straight score.