Legal Question in Bankruptcy in California

Re: Chatpter 7 Car Relief from Automatic stay

Do you have an attorney representing you in the bankruptcy? If so, call him/her and ask then to explain what is happening. If you do not have an attorney, then I'll tell you what is "probably" happening, but without more facts, I cannot say for sure. You really should retain an attorney for an hour or so to review all of this with you for specific advice.

Even though you have surrendered the vehicle, they are probably seeking relief from the automatic stay for two reasons. First, the car, when you filed bankruptcy, became an asset of your bankruptcy estate, and technically, it takes the Court's approval to sell, transfer or in any way dispose of property of your estate. So the bank is seeking approval to cover the surrender of the car, and to turn around and sell the car at a wholesale auction. Second, the relief from stay is not intended to let them come after you for money. Relief from stay only gives the lender permission to continue to pursue their rights and remedies as to the car, not you personally. Read the motion carefully - it will tell you (as well as the court) what they are seeking. I doubt there is a request in there for money from you, as that is the wrong way to go about exempting from discharge a debt you owe. The Meeting of Creditors has nothing to do with the motion for relief. Have an attorney review the motion and you most likely do not need to respond or even appear in court on June 10.

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