Due to an unpaid credit card our vehicle was seized. Within a few days we filed for bankruptcy. Over the last week and after analyzing our debt to income ratio we have changed our mind and are filing to dismiss our original claim. Since our vehicle was seized and then put on the automatic stay the court officers have not been able to sell the vehicle and get the money to pay the debt. Once our case is finalized and our creditors are notified i knows that we will still owe the debt. My question is- when the vehicle is sold will the court officers bill for storage and towing come out of the proceeds of the sale and if so do they pay themselves or the collection company first? Basically I want to know where the money from the sale goes and how much I will be on the hook for in the end.
2 Answers from Attorneys
It first goes to court officers and their expenses which includes storage fees and a lot more. You will still be on the hook for any remaining credit card debt.
If your finances are poor and you got your vehicle seized, a chapter 13 might be in your best interest as this can give you protection for three to five years. As to your question, you have the judgement plus court costs and fees and storage fees less the proceeds of the sale. You owe the balance.
Related Questions & Answers
I am thinking about filing for personal Bankruptcy ,is there any way to save my home... Asked 2/16/13, 3:28 pm in United States Michigan Bankruptcy Law
I want to know if there are ways to protect my home before I file for bankruptcy? i... Asked 2/15/13, 4:02 am in United States Michigan Bankruptcy Law
My home is in a living trust. do i need to list this in chapter 7... Asked 1/18/13, 3:59 am in United States Michigan Bankruptcy Law
If I own a $100K home (mortgage paid off) and I sell that home via land contract to... Asked 1/15/13, 2:54 pm in United States Michigan Bankruptcy Law
I need to file for bankruptcy. I'm living in a house that is in my name but was paid... Asked 12/13/12, 1:13 pm in United States Michigan Bankruptcy Law