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Complicated question about a secured debt

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    Complicated question about a secured debt

    I am currently in the process of filing a Chapter 7 bk right now and i live in Oregon.

    I have a auto loan that is about 2 years old on a 7 year loan. The car is worth about $11,000 and I owe around $15,000. The attorney told me there is a chance I may be able to keep the car, and work out a deal with my financing company but, I'd perfer not to.. I've made enough mistakes with financing and making payments, I'd rather just start over.

    My attorney also told me, if I wanted to just get rid of the car, I would get like $2000 or something like that from the equity or from the payments I've already made, I don't quite remember. Is that true?

    How exactly does the liquidation of secured assets work and is there really money that will be sent my way? And on a side note, my car has an unconditional guarantee from a dealership on it. Will I be protected from a lawsuit from the dealership when I file a chapter 7?

    #2
    You will not receive any sort of pay-out from the vehicle because there is no equity in it. Also, when liquidating assets, the debtor hardly ever recieves any money.
    Bankruptcy History:
    Chapter 7 filed - 10/12/2005 - Asset
    Discharged - 02/16/2006
    Case Closed - 11/08/2007

    A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain

    All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.

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      #3
      There cannot be any equity if you owe more than its worth.

      You will not get any money from this vehicle.
      5/29 Filed 7~ 341-on 6/24
      8/27-DISCHARGED
      11/2 - CLOSED
      EQ-604 EX-605 TU-560 ~4.5 months after discharge

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        #4
        That's what I thought. I must of misunderstood her.. That doesn't make since to get money out of losing a secured asset if I don't hold any equity.

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