Can you file bankruptcy on a repo?
Nikki asked:
I just had my car repo’d last night, and I am in the process of filing bankruptcy. I have the paperwork, but it hasn’t been turned in yet. Can I still file on it even though it has been repossessed? I live in Indiana.
Thanks in advance for answers.
I just had my car repo’d last night, and I am in the process of filing bankruptcy. I have the paperwork, but it hasn’t been turned in yet. Can I still file on it even though it has been repossessed? I live in Indiana.
Thanks in advance for answers.
I’d say that seeing as it’s been repo’d and not yours anymore because you defaulted on your payments then you can’t still claim it.
Check with your lawyer to be sure.
Comment by parsonsel — December 30, 2009 @ 3:46 am
Contact your bankruptcy attorney and let him know about it. Depending on which type of bankruptcy you are filing you will have different remedies. There are situations in bankruptcy where you can get your vehicle back, but they are time dependent. Your attorney will be able to explain them to you.
Comment by pookie_one — December 31, 2009 @ 4:34 pm
The lien holder is now an unsecured creditor because they have the collateral. You cannot list the vehicle as an asset, but you would list the creditor to discharge the deficiency balance.
If you wanted to try and keep the vehicle, you should contact your attorney asap, they may be able to file an adversarial proceeding to get the creditor to return the vehicle to you.
Best of luck to you.
Comment by WHUFF — January 3, 2010 @ 8:19 am