Adventures in Bankruptcy...

CaptainSchmideo

Some may remember this post from back in January:

http://www.jehovahs-witness.com/6/107635/1.ashx

Well, we filed in March, and everything was going along relatively painlessly until this morning:

I walk outside and find that my wife's car is gone.

I call the police and discover that it's been repossessed by the finance company. Not because I haven't been keeping up with the payments (I have made 4 regular monthly payments since we filed). It's because I had not signed a re-affirmation statement with them. On my lawyers advice, I did not do so, because it actually removes from me the protections I have currently under Bankruptcy law, plus it creates a new contract that give more advantages to the finance company.

So, I called my lawyer. He was fuming! He says that taking my car while we are still under Bankruptcy is illegal (we have not recieved our discharge yet, so a "stay" of action still exists for us), and now the finance company is trying to strongarm us by offering to give us our car back if we "just go ahead and sign" the reaffirmation. He states this tactic is also illegal.

His recommendation to me is to sue the finance company for breach of contract and for damages. He is willing to work on a contigency basis, and his fees will also be specified in the damages of the suit if we win the case.

So far, he's been a good, efficient lawyer; he was recommended to me by a coworker who had to file a few years back.

The big drawback is that we will not have the car, and the case will take months to litigate. On the plus side, I was talking to my boss at work, and he says he'd be willing to work out a company car for me for my use, and then my wife can have my car, which is paid for.

My attorney says that a case like this has yet to be litigated under the new Bankruptcy laws, but from a lawyer's viewpoint, it is a great case, because we had been making our payments on time and regularly, which showed our intent to keep paying on the debt. He says he wouldn't attempt this case unless he was certain there was a good chance of winning (even though there are no guarantees, of course). Such a case could actually set precedent, which means what I do today can prevent some other poor working sclub having the same thing happen to him.

So, court of public opinion time. Whaddaya think? Sue, or sign?

damselfly

I'm leaning to the sue side.
Would that drain you even more fianancialy though?

Dams

wednesday

Where I live you have to either sign the affidavit or give them the car. Since we would want to keep our car, we would sign the reaffirmation agreement. .This is our state law. I do understand that not all states work like this, but if you don't sign you are out a car. I guess it would depend on how much you had left to pay on the car. If it was nearly paid for, I'd sign and get my car back. If it is recently purchased, it might be worth the trouble to just let them have it and buy another.

CaptainSchmideo

In our state, the reaffirmation is not mandatory. That's why my attorney did not recommend I sign to begin with.

Financially, if my company provides me a car, I actually come out on the good side. They take care of the routine maintenance, probably the gas (except for what I drive for personal use), and the insurance. I might lose a monthly stipend I was getting, but that money was paying for the monthly car payment anyway, so it's a loss of less than a hundred dollars. My insurance will drop about 60 a month as well.

restrangled

I cannot read your painful post

'Why, because we went through the same. if you want the stinking details pm me.

bikerchic

Awe bummer!

My attorney says that a case like this has yet to be litigated under the new Bankruptcy laws, but from a lawyer's viewpoint, it is a great case, because we had been making our payments on time and regularly, which showed our intent to keep paying on the debt. He says he wouldn't attempt this case unless he was certain there was a good chance of winning (even though there are no guarantees, of course). Such a case could actually set precedent, which means what I do today can prevent some other poor working sclub having the same thing happen to him.

I would sue! I was wondering though would you still need to make your car payments even though you don't have the car? Also where is the car? I mean is it just sitting somewhere idle or is someone driving it in the meantime? I know, I know too many questions.....

restrangled

As a former legal secretary, and someone who has filed bancruptcy many years ago, I have one question about your vehicle. You state you have made such and such payments over a certain amount of time.....unless you made 3 consecutive payments that car would have been repoed.

I would let this go....Most attorneys work on the basis of time. In other words, your time, your money, your stress not theirs. We had a topnotch attorney who kept us waiting 5 years on a bankruptcy filing. We lost a home, a vehicle, and time which is now counting against us.

My advice? let it go, you will probably pay more for his rep than the car will be worth by the time it is all over.

r. Just my opinion.

CaptainSchmideo

I made 4 consecutive on time payments from the time we filed in March until last month, and was set to pay them again this Friday (two weeks early, by the way.)

My discharge is just about done. We have already had the meeting with the creditors, we have already taken the required Consumer Credit Counseling course required by law. My attorney has already been paid his flat rate for the original filing. And since he is working on contingency on this new case, if he don't win, he don't get paid.

I'm sorry about what happened to you. I'm amazed that it took five years for your attorney to file. As a legal secretary, did someone in your firm recommend him?

CaptainSchmideo

was wondering though would you still need to make your car payments even though you don't have the car? Also where is the car? I mean is it just sitting somewhere idle or is someone driving it in the meantime? I know, I know too many questions.....

Right now, the car is in an impound lot. If I refuse to sign, the finance company keeps the car, and I no longer have to make payments on it.

I just need to get our belongings out of there...

bikerchic

I just need to get our belongings out of there...

Oh for the love of doG.....I sure hope you don't need an act of Congress to get them. Sorry for all your troubles Capt'n but once it's finally all over you'll feel loads better. Hang in there!

Adventures in Bankruptcy...

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