Deficiency on auto

[billybob37]

Hi, I will be hopefully filing Chapter 7 soon. My vehicle was picked up this week. When I go to file do I still add in the vehicle even though it is gone? I was thinking if it wasn't added then when they sell it and there is a deficiency they will come after me for that.

[BassBoy]

Yes, you will add this creditor and the amount owed (last known loan balance) on your Ch.7 petition. The vehicle is gone, but your obligation to repay the loan is not, until either the vehicle is sold, you pay the deficency, or you file for bankruptcy.

[billybob37]

Thanks for the reply. One other question though. What if we did a 13? Would we still add it and have to pay for it in the 13 even though we don't have the vehicle because I think in 13 you have to pay secured back 100%?

[BassBoy]

This may be more suited for our Ch.13'ers, which I was not, but I believe that if you file Ch.13, the amount owed would be included in your repayment plan.

[keepmine]

Thanks for the reply. One other question though. What if we did a 13? Would we still add it and have to pay for it in the 13 even though we don't have the vehicle because I think in 13 you have to pay secured back 100%?

An auto deficiency is unsecured debt. They are treated as other unsecured creditors like cc's and medical bills.

[lrprn]

This may be more suited for our Ch.13'ers, which I was not, but I believe that if you file Ch.13, the amount owed would be included in your repayment plan.

In this case since the asset (the car) has already been returned to the lender before filing, the left-over vehicle loan amount is no longer secured and will not be paid back in Ch 13. Of course, it's always best to check with an experienced bk lawyer in your area to be certain this will be the case in any individual Ch 13 situation.