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secured loan - bankruptcy

Date: Sat, 02/13/2010 - 19:19
Submitted by hsanidad08 on Sat, 02/13/2010 - 19:19
Posts: 52
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2 make story short...

my husband is filing for bankruptcy chapter 7. were debating whether we should add up our car or not.

he has a secured loan with citifinancial. (collateral) u know, if he dont pay, they'll take his car. the car is FULLY PAID. the only thing were paying for is the insurance and the loan from citifinancial.

NOW..the car is not working for about 4-5months now. were paying citifinancial lil by lil. he's paying the amount due on time etc.

now that he's filing for bankruptcy..here are the questions..

-should we add the car/citifinancial to the bankruptcy also? citifinancial told my husband that when they do that meeting with creditors, theywill show up and fight for it. can we still add the citifinancial to his bankruptcy filing?

-since the car is not working anyways, were thinking of giving the car instead to citifinancial. but how would that work? its a bit confusing. if they take his car, they will sue him?? what if we just turn in the car to citifinancial and pay the remaining balance? BUT THEN instead of paying the remaining balance, we add that to his bankruptcy? can we do that?

cause now that i have my income tax, were thinking of fixing the car. cause the car is fully paid. were only paying the insurance and citifinancial. but then later on, something might go wrong with the car again. so were thinking of getting a new one instead. but now that the car isnt working, we thinking of giving it to citifinancial. question is can we put the remaining balance to bankruptcy, cause its a secured loan.


Crisa, your best bet is to speak to a bankruptcy attorney.

However, if you want to retain the car, you'd have to continue paying the loan on it no matter what. But if you turn the vehicle over to the lender voluntarily or let it get repossessed, you can then add the remaining balance under ch7 in absence of reaffirmation agreement.


Submitted by SC on Sun, 02/14/2010 - 21:01

SC

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at first were debating whether to fix the car or not. its fully paid but then were paying citifinancial. if we fix it, the car might have something wrong again in the future. it be a waste of time and money.

i was wondering if you can tell me what are our rights if we decided to turn in the car ourselves to citifinancial. cause the citifinancial people are aggressive. just cause were "young" on these kinds of things, we feel like were being stepped on, cause we dont know much about anything, specially in cases like this. sometimes i think their just scaring us, that they'll sue my husband, they even told him that if he turns in the car, they will show up for the 341 meeting on bankruptcy etc. and that they'll fight for it. their very aggressive i tell u. i wanna know what we must and should do..and what not. and what are our rights..


Submitted by hsanidad08 on Tue, 02/16/2010 - 04:37

hsanidad08

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Chrisa,

The 341 meeting is nothing really very scary. Chances are less that a lender would show up in the meet. But even if they do, no worries. In the creditor's meet the BK trustees would ask you questions, under the penalty of perjury, about your financial status and the like. You can check out the following site for a list of questions that you can expect to be asked in the meeting.

"http://jenlawyer.com/65/what-happens-at-the-341-meeting-of-creditors/"


Submitted by SC on Wed, 02/17/2010 - 03:03

SC

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