I am so confused and my layer is no help at all. I filed for ch 7 and think just waiting for the trustee to cash the over exemption money order for it to be discharged. I have a car with USAA and instead of keeping paying storage I asked them to get it since it's in the bk they said I need to do a surrender request and that's not guaranteed to be approved if it's not worth it to them. I owe 53k and KBB is 36k so I highly doubt they are just going to say keep it even if they did I read I can't sell it, trade it or get the title. So I'm not sure what to do here. I would either like for them to come get it or maybe negotiate a price so I can sell or trade it so they don't have too, as I highly doubt they will just say keep it
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My guess is that you paid very little for your Chapter 7. What I mean by that is that you paid the bargain basement price well under $2,000 without any extra services. A $53K balance on a car with a current value of $36K would make me want to get a 722 Redemption and redeem that. A bank must take a surrender or just let the car sit there. You don't have to keep property in a Chapter 7. What did you put on your Statement of Intentions? Did you put surrender or reaffirm? In Florida you must choose redeem, reaffirm or surrender.
There are too many things going on here so we must start with your statement of intentions and what you planned to do with the vehicle.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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Originally posted by Pavetim View PostI paid $2500 and wasn't offered any extra services. I put surrender. I'll have to look and see what that 722 redemption is
A 722 Redemption may be too late since you already put surrender.
Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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Originally posted by Pavetim View PostCase isn't fully discharged yet so I will see what they say once it is. I read if they still refuse to take it you can take it to court and offer to buy it for $1
There's a famous case with General Motors (GMAC) for refusing to repossess and also, and this is the kicker, refusing to release the lien. GMAC in that case told the debtors that GMAC would not repossess and if the debtor wanted a relief of lien then they'd have to pay. The lower court found for GMAC and said they didn't violate the permanent discharge injunction. On appeal, however, the First Circuit reversed and remanded. They opined that what GMAC was coercive and an "intent" to collect a discharged debt. Pratt v. Gen. Motors Acceptance Corp. (In re Pratt), 462 F.3d 14 (1st Cir 2006)
So be careful what you read on the internet. At best GMAC had to repossess or release the lien. I don't know where the $1 comes from. You cannot redeem a vehicle, for $1, after the case is discharged. A redemption must be entered into prior to discharge.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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That's theoretical. Motion practice around that is typically what happened in the Pratt case. The lender is not going to get a $36K vehicle redeemed for $1. It would technically be a motion to value and then propose to pay the fair market value. First, you'd have to get an attorney to take the case with the hope of earning and recovering fees. Second, the court would need to agree the vehicle is worth $1 which is unlikely. Finally, remember that a court can't force a creditor to act on its rights, including repossession. Read the Pratt case.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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In Florida, and the 11th Circuit, you must redeem, surrender, or reaffirm. Those are the only three options. You do not need to surrender. Many actually reaffirm, some redeem, and fewer surrender.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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Check your Statement of Intentions and make sure it matches what you expect and want to do. If not, please lean on your attorney.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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Reaffirming won't automatically make sure it still reports. Many creditors require an acknowledgement by the debtor (and also agreed by the debtor's attorney) that the creditor can continue to report. They don't want to run afoul of the discharge injunction even though the debt is reaffirmed. You cannot reaffirm a debt after discharge. You. must enter into a reaffirmation agreement before discharge.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
Visit My BKForum Blog: justbroke's Blog
Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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