topic Re: Any Experiences with a Southeast Toyota Finance Deficiency Judgement in Auto Loans

Any Experiences with a Southeast Toyota Finance Deficiency Judgement

Anonymous — Thu, 17 Nov 2016 16:41:01 GMT

Hello Everyone!

I was curious if anyone could help me out with something.....

I filed Chapter 7 in June and it was Discharged on September 29th of this year. My auto loan with Southeast Toyota Finance for my 2015 Corolla was Reaffirmed so I was able to keep the vehicle and continue making payments.

This past weekend I was interested in trading in my corolla for another vehicle. Upon speaking with the sales manager and review both credit reports from Equifax and Transunion, both reports were showing my existing auto loan with a $0 balance, "Included in bankruptcy", and closed, so he suggested I surrender the vehicle, and I was easily sold the new vehicle, as my credit reports aren't actually reflecting any active auto loans with a balance.

Now I understand that by surrendering the vehicle after I reaffirmed it, the lender can sell at auction and come after me for the difference in the sale price and what I owe.....but this is my question: Has anyone had any experience with SETF (Southeast Toyota Finance) and a deficiency judgement, and whether they will accept any settlement offers? I am will to negotiate a settlement amount for them to consider it PIF.

Thanks!

Re: Any Experiences with a Southeast Toyota Finance Deficiency Judgement

StartingOver10 — Thu, 17 Nov 2016 17:05:48 GMT

Have you already had the vehicle repo'ed?

Can't you just sell it rather than taking a hit on your credit immediately after Bk? It is totally different to have a reaffirmed loan with a repo than a non-reaffirmed loan. The car sales rep gave you very bad advice and he knows nothing about Bk and the effects of a repo after a Bk discharge.

Re: Any Experiences with a Southeast Toyota Finance Deficiency Judgement

Anonymous — Thu, 17 Nov 2016 18:32:21 GMT

No it hasn't been repo'd or surrendered yet.

I wouldn't be able to do a private sale because it is financed.

I did speak to my lawyer bankruptcy lawyer about this and his advice was this.......The corolla is only worth about $10,500, but I still owe roughly $18,000 on it. He stated that I am so far upside down in the vehicle, value to amount owed, I would be better off letting it go now that I have a new vehicle and settling with SETF for the remaining balance.

I just wanted to know if anyone has had any experiences with settling what im assuming is called the "deficiency judgement" once the old car is sold.

Re: Any Experiences with a Southeast Toyota Finance Deficiency Judgement

StartingOver10 — Thu, 17 Nov 2016 21:25:26 GMT

@Anonymous wrote:
No it hasn't been repo'd or surrendered yet.

I wouldn't be able to do a private sale because it is financed.

I did speak to my lawyer bankruptcy lawyer about this and his advice was this.......The corolla is only worth about $10,500, but I still owe roughly $18,000 on it. He stated that I am so far upside down in the vehicle, value to amount owed, I would be better off letting it go now that I have a new vehicle and settling with SETF for the remaining balance.

I just wanted to know if anyone has had any experiences with settling what im assuming is called the "deficiency judgement" once the old car is sold.

^^^I am stunned that the attorney would sign off on your reaffirmation and then say to surrender the vehicle - unless he didn't file it with the court.

Why did your attorney have you sign the reaffirmation agreement if you were going to surrender it? Take a look at PACER and check to see if the reaffirmation agreement was actually filed with the courts. I bet your attorney didn't file it and if he didn't then it isn't reaffirmed at all and you can turn it back in without having the creditor come after you. There are timelines associated with filing the reaffirmation agreement. I have my fingers crossed for you that the attorney held back and never actually filed it. That would be the best result for you - and the most logical considering the subsequent advice he gave you.

EDIT: As to not doing a private sale because it is financed - that info is incorrect. The only thing needed is for the loan to be paid off just like any other transaction. You are upside down - that is the issue You could have handled that with the purchase of wthe new vehicle. The sales rep clearly didn't want to do the trade. I don't quite understand this not wanting to do the trade since you have the cash to pay most of the negative equity (from your post saying you have cash to settle the difference). If you do allow the lender to repo your old vehicle, the sale at auction will be very low.