Repo and CH 7

[Anonymous]

Hello everyone,

I recently recieved a email from my attorney stating that my car loan company filed a petition with the bankruptcy court to undo the automatic stay to repo of my car. I’m happy since I do not drive the car and wanted to surrender the car and im upside down in my loan. When reading the petition to the court, the last statements has me wondering will I have to pay the car loan attorney in the future?

1. Terminate the automatic stay, to allow Movant to recover and dispose of the aforesaid 2008 Chevrolet Impala; and
2. Grant Movant such other and further relief, as may be necessary and just, including its attorneys' fees, expenses and costs.

[ezdriver]

That 2nd statement is definitely problematic. If your attorney does not object,  please raise a flag to the trustee by claiming that you do not understand what it means. Your trustee will order your attorney to address it.

Essentially the creditor is requesting an unspecified  $$$ in addition to the vehicle. Try and act quickly. 

[0REDSOX7]

Keep us posted here. I'm interested to see how this pans out...

[despritfreya]

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Inflight99 wrote: When reading the petition to the court, the last statements has me wondering will I have to pay the car loan attorney in the future?. . . Grant Movant such other and further relief, as may be necessary and just, including its attorneys' fees, expenses and costs.

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Boiler plate language - means nothing.  Your attny should tell you not to worry about it.  The Order for Releif will be in rem only.

Des.

[Anonymous]

You were right my attorney told me not to worry about it. 

[ezdriver]

I signed a reaffirmation agreement and then was hit with thousands of $$ for "fees, attorney costs, etc." from the auto loan company. My attorney told me not wo worry about it but it was not that straightforward. I would ask the attorney to ensure that all charges are enumerated so you know specifically what the auto loan company is requesting. It is up to the trustee and bankruptcy court to decide what they will receive ... but that could be more than you wish to pay.

[mynameainttracy]

They probably say all that jibberish so that they can write it off or however it is that they handle losses on their own taxes.

[despritfreya]

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@ezdriver wrote:

I signed a reaffirmation agreement and then was hit with thousands of $$ for "fees, attorney costs, etc." from the auto loan company.

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Did the Court grant the reaffirmation agreement? If "yes" then you are 100% responsible for whatever was/is required under whatever you reaffirmed. If "no" but you are still in possession of the vehicle and making payments, should you elect, at some point, to walk away you will owe nothing of the remaining "balance".  

This is not OP’s situation. OP is surrendering the vehicle and is not even thinking about reaffirming. OP will have absolutely no financial obligation to pay anything associated with the surrendered vehicle.

Again, boiler plate language in a Motion for Relief From the Automatic Stay.

Des.

[ezdriver]

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@despritfreya wrote:

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@ezdriver wrote:

I signed a reaffirmation agreement and then was hit with thousands of $$ for "fees, attorney costs, etc." from the auto loan company.

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Did the Court grant the reaffirmation agreement? If "yes" then you are 100% responsible for whatever was/is required under whatever you reaffirmed. If "no" but you are still in possession of the vehicle and making payments, should you elect, at some point, to walk away you will owe nothing of the remaining "balance".  

This is not OP’s situation. OP is surrendering the vehicle and is not even thinking about reaffirming. OP will have absolutely no financial obligation to pay anything associated with the surrendered vehicle.

Again, boiler plate language in a Motion for Relief From the Automatic Stay.

Des.

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My point was simply that I won't always trust a bankruptcy attorney when he says "don't worry about it" if that attorney does not specialize in bankruptcy cases/laws.