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  1. #1
    Join Date
    Apr 2014
    Posts
    3

    Default Can Your Car be Repossessed if the Debt is Discharged in Bankruptcy

    My question involves bankruptcy in the state of: California.
    We recently filed bankruptcy which has been discharged last month. One of our creditors was LoanMart. We initially got a loan with them against our 65 Mustang, and when going thru BK, we chose to keep the car. We did not include them in the BK. LoanMart informed us that they don't do reaffirmation agreements, and charged off our loan. They made one attempt to come and take the car and I said no. I called another place to refinance the loan, but they said they couldn't help me due to the fact that LoanMart charged off the loan in BK. My question is what now? Am I to assume they just continue to be the lien holder on my car until they get what they think they are owed? I don't know what to do now. Since they charged off the loan does this mean that they are no longer entitled to the money because it was discharged in the BK? Help Help....

  2. #2
    Join Date
    Apr 2009
    Location
    Somewhere near Canada
    Posts
    35,894

    Default Re: Can They Still Take Your Car if They Charged It Off After Bankruptcy

    A "charge off" is an accounting term; it doesn't mean the debt has gone away.

    You said that the creditor was not included in the bk; but your last comment suggests that it was. Can you clarify?

  3. #3
    Join Date
    Apr 2014
    Posts
    3

    Default Re: Can They Still Take Your Car if They Charged It Off After Bankruptcy

    We didn't list them on the bankruptcy, but they show as a debt that was discharged in the bk on our credit report. That's what is so confusing!

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can They Still Take Your Car if They Charged It Off After Bankruptcy

    With the debt being discharged, they cannot try to collect the money from you. They can still exercise their rights as the lienholder and repossess the car.

    There's not so much an "what they think they are owed", as there is "the amount that they're owed". Your debt is governed by your loan agreement. If you don't understand how they have reached the balance that they state that you owe, to have them relinquish their lien, ask them for an accounting / explanation.

  5. #5
    Join Date
    Apr 2014
    Posts
    3

    Default Re: Can They Still Take Your Car if They Charged It Off After Bankruptcy

    So I have no recourse whatsoever? I am so frustrated!

  6. #6
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Can They Still Take Your Car if They Charged It Off After Bankruptcy

    Quote Quoting Quintous3
    View Post
    So I have no recourse whatsoever? I am so frustrated!
    Pay them or give them the car. Why should you profit at their expense? You are frustrated they are not buying you a free toy?

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