Hi All,
I have a quick question. I just recently filed bankruptcy. Two weeks ago I want to court and none of my creditors showed up. After speaking with my lawyer, it seemed that I was all done with my part. Well,lLast week I received court documentation, stating that I had to go back to court 10/1/2007, (which is the hearing date), because the lienholder for my car filed a Relief of Automatic Stay.
What exactly does this mean? I had included my car in the BK and have just been waiting for them to pick it up. Does this mean I have to keep the car now? Do I have to go back to court on the hearing date? Please help. I'm freaking out.
Thank you so much
2007-09-17 11:40:18 · 5 answers · asked by Tawn 2 in Business & Finance ➔ Credit
I have left 3 messages with my lawyer and he hasn't returned my call.
2007-09-17 11:52:43 · update #1
No, they are going to take the car. You are not going to be stuck with it.
The Bankrupcy is for unsecured debt, like medical bills and credit card. You won't have to "give" anything up to be free of that debt.
The car is a secured debt, so ithe car company has to remove it from the bankrupcy so they can take it back. You have to give it back. Which is what you want anyway.
Confusing, I know. But you are fine. This is part of the process.
2007-09-17 11:49:50 · answer #1 · answered by Joseph G 6 · 0⤊ 1⤋
Yes, you have to go back to court if the court sent you something saying you have to do so.
No, relief of automatic stay is not what you think.
Normally, certain things stop while a bankruptcy is pending; for example, evictions for not paying rent are stopped in some cases. This is called an automatic stay. "Relief from automatic stay", if granted by the court, "permits a creditor to take certain specified actions, which will be spelled out in the order, to collect a debt against you. The relief may include permission to foreclose or repossess, to seek recovery under an insurance policy, to continue an action against you in a state court, and so on." In this case, the specified action is probably seizing the car.
2007-09-17 13:29:53 · answer #2 · answered by StephenWeinstein 7 · 0⤊ 0⤋
Relief of Stay means they are petitoning the court that the debt for your auto loan not be discharged with the bankrupcy and that you be required to pay the loan back.
So that either means you have to keep the car and continue to make the payments, or you need to allow them to repo the car and sell it and pay the deficiancy balance off. The 2nd is wores than the first because you will not come close to recieving the balance of what you owe on the car and they tack on a ton of fees as well...you would have to pay towing and storage and legal fees along with what they didn't get for the car.
You need to get ahold of your lawyer and find out how exactly you will show cause that the car should be discharged in the bankruptcy. You will have to explain to the judge how you will get to and from work and how you will get to and from other necessity places (ie grocery store). My parents bought me a car after my bankruptcy and so I was able to prove I didn't need the car I was including in the bankrupcy, but they auto company did not challange my bankruptcy as yours is.
2007-09-17 12:49:04 · answer #3 · answered by Anonymous · 0⤊ 1⤋
It sounds like you were planning to turn in your car, and have not been making the monthly payments. If this is the case then this is a normal procedure. They just want to be able to pick up the car, and this is what they need to do to legally do that.
However, a quick call to your lawyer should put your mind at ease..That is what you paid them for.
2007-09-17 11:48:57 · answer #4 · answered by OC1999 7 · 0⤊ 1⤋
WHY are you NOT asking your lawyer ?
He is the professional handling your case ,
With your specifics , in your state .
>
2007-09-17 11:48:12 · answer #5 · answered by kate 7 · 0⤊ 1⤋