I just pulled out my contract for the car I surrendered in BK..Please help!

[9877donna]

It say's: Right to Demand Payment in Full if Upon the following events of default,you can require that the entire balance of my loan be paid at once,without prior notice or demand,IF;
#6 I file Bankruptcy or if any proceeding is instituted to seek relief from my debts....

What does this mean? Will I have to pay that deficiency balance? Or does the Bankruptcy discharge cancel out all previously signed contracts?

[keepmine]

A deficiency balance is unsecured debt and is discharged in your bk.

[9877donna]

A deficiency balance is unsecured debt and is discharged in your bk.

Oh thank you so much keepmine for such a quick response.I was in a panick when I read that in the contract.Thank goodness.Now I know if they push this I can get a lawyer and push back.
Thanks a million!
Donna

[Spartan]

Can one sign away her right to bankruptcy relief?

It seems the contract is worded in a way to hint at that. Could be just a ploy to make you think you have to pay even if you file for relief.

[keepmine]

Bankruptcy is a federal court proceeding that trumps contracts .
Just look at what happened to CBA's from all of these airlines when the business filed bk.

[9877donna]

Besides if they had a leg to stand on I would have thought they would have filed an Objection to Discharge in the sixty day period of time given to them to do so.Right?

[BK'd-Betty]

Hi Donna!

I read the above paragraph not as a "deficiency" clause, but as an "acceleration" clause.

To me, I read this to say, they can call the loan in full, if any of the listed events happen. I don't read it to mean that you are responsible for the balance if you file for bankruptcy and it is discharged.

[9877donna]

Hi Donna!

I read the above paragraph not as a "deficiency" clause, but as an "acceleration" clause.

To me, I read this to say, they can call the loan in full, if any of the listed events happen. I don't read it to mean that you are responsible for the balance if you file for bankruptcy and it is discharged.

Hi BK'd Betty,Getting a letter like this from the seller seemed so strange to me.My creditor was obviously the bank that financed the loan.Not the car dealership that sold it to me.I wouldn't think the dealership would have any say in this at all!Maybe it's just an attempt to collect the deficiency balance for the bank?!! I don't know.I did send the papers over to them and they should be receiving them today.It would be nice if that was the end of it but I don't know.I'll have to wait and see.I'll certainly keep everyone posted.
I really appreciate all the feedback.

[BK'd-Betty]

That is very odd Donna - why would the car dealership even be involved? Perhaps, as you said, they are acting as a collector for the bank - did the car dealership auction the car off for the bank?

Either way, after they receive your letter - that *should* end it. If you get any more correspondence from them your next letter should be very firm, reminding them that they are breaking the law by violating the permenant injunction your discharge grants you by trying to collect on a debt that has discharged and that they are forever barred from trying to collect.

[9877donna]

That is very odd Donna - why would the car dealership even be involved? Perhaps, as you said, they are acting as a collector for the bank - did the car dealership auction the car off for the bank?

Either way, after they receive your letter - that *should* end it. If you get any more correspondence from them your next letter should be very firm, reminding them that they are breaking the law by violating the permenant injunction your discharge grants you by trying to collect on a debt that has discharged and that they are forever barred from trying to collect.

Thanks again Betty.I will certainly put every single word you stated in your response into my letter to them.I am so hoping that will not be necessary.
I might end up having to hire a lawyer if they push this to a legal level...

[HHM]

The reason it may have come from the dealership is that the bank may have "charged back" dealership for the loss. In any event, just send the letter and discharge paperwork.

[9877donna]

The reason it may have come from the dealership is that the bank may have "charged back" dealership for the loss. In any event, just send the letter and discharge paperwork.

Thanks HHM.I did send the paperwork to them.I'll let you know what happens.