Legal Question in Bankruptcy in Maryland

Negotiating with bank

I have a Chap 7 Discharge; my truck which I need for earning living can be repossessed by the bank. This bank is holding a CD for collateral of $50K against the truck; this bank has also violated the Chap 7 injunction by continuing to send collection ltrs on truck and other loans. Would it be ethical to write and offer them a REDUCED lump sum to pay off truck (I can borrow this from relative) and if they agree, I will not sue them for violating injunction? Would this be legitimate?

Asked on 5/12/08, 7:21 am

2 Answers from Attorneys

Daniel Press Chung & Press, P.C.
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Re: Negotiating with bank

Yes, assuming there really is a discharge violation. This is something you really ought to do with the assistance of counsel, as the bank may not want to talk to you for fear of violating the discharge (or being accused of it). Also, be sure there is a violation - if the letters are directed to repossession rather than collection, they may not violate the discharge.

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5/12/08, 10:49 am
Alton Drew Alton Drew, LLC
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Re: Negotiating with bank

You may want to review the discharge order. If you have $50,000 in cash sitting in the bank, it some of those proceeds should have been used early on toward your debts. In any case, it may be best for you to use the 50K to pay of the truck.

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5/12/08, 7:45 am

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