My husband and I filed bankruptcy for our credit cards. We kept our home and cars. Our neighborhood has become very dangerous and we put the house up for sale but stopped paying the mortgage because we will be moving sep 1. The mortgage is now 2 months behind, our bankruptcy case was confirmed March 2007. I just got a letter in the mail to return to court aug 30 because washington mutual (our second mortgage) has filed a relief from the automatic stay. What does this mean? I also noticed the bank that I have my car loan through is on the bottom it says subject to lien. Does anyone know what this could all mean? I will contact my attoorney tomorrow but in the mean time I wanted to get some info. Thanks in advance.
2007-08-06 16:25:53 · 4 answers · asked by imissrascal 3 in Politics & Government ➔ Law & Ethics
attorney**
2007-08-06 16:50:19 · update #1
When a bankruptcy is filed, an automatic stay is entered by operation of law. That means no one can make any collection attempts during the period of the stay. "Subject to lien" means you owe money on the car--like a mortgage on a house. If you want to keep the car, you can reaffirm the debt. If not, it's a "secured" debt and the car can be repossessed after the stay expires.
2007-08-06 17:19:58 · answer #1 · answered by David M 7 · 2⤊ 0⤋
The bankruptcy does not eliminate the bank's lien on your home. If you don't make the payment, the bank can still enforce the lien by foreclosing on your home.
The automatic stay is a bankruptcy court order that went into effect the moment you filed your case. It stops most creditor actions and it is one of main reason people file for bankruptcy...to stop creditor harassment. The bank must get permission and move for relief from the stay before continuing any foreclosure proceedings.
The same basic rules apply to you car. If you want to keep your care, you still need to make the payments.
2007-08-06 17:34:46 · answer #2 · answered by Carl 7 · 0⤊ 0⤋
Your bank wants nothing to do with the bankruptcy that is taking place and wants you to start paying the mortgage again, and needs the courts to say that they can ask you to do that. Subject to lien means that the bank still has a lien on your car and it is not being taken off lien anytime soon.
2007-08-06 16:33:01 · answer #3 · answered by Sgt Little Keefe 5 · 0⤊ 0⤋
When you file for bankruptcy, you get an automatic stay, meaning that creditors can't collect from you. WM is asking for an exemption from the automatic stay so they can start collecting again. Lien means that you don't own the car yet because you owe the bank money on it, so they hold a lien on it until it's paid off.
2007-08-06 17:03:07 · answer #4 · answered by Anonymous · 1⤊ 0⤋