Legal Question in Business Law in Minnesota

I have recently found myself in a situation where my vehicle was totaled during a storm via tree colapse during a lapse of insurance. The situation is worsened because there is a 12,000 lien on the vehicle. I have the abilitility for NOW to make payments, but i graduated college in May, have no assets and a lot of debt, which makes paying monthly on a totaled car not very realistic. I currently live at home with family, and am in an intern position which is ending within a month. I spoke with a bankruptcy attorney, whom suggested that i A) declare bankruptcy, or B) try and amass some money in order to try and work out a deal with the finance company, letting them know that i have no assets and bankruptcy is on the table.

I am looking for a few more opinions, and curious about the liklihood they will 1) work with me on a deal, and 2) how much i would most likely have to come to the negotiating table with.

Thank you!

Asked on 7/23/13, 10:36 am

2 Answers from Attorneys

Dominique Navarro Larry B. Stevens & Associates
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The attorney that you consulted is correct. However, please note that the bankruptcy route will effect your credit for several years. It would be wise to try negotiating a deal with the finance company. The amount that you should expect depends on the lender and how willing they are to negotiate. Every lender is different.

However, also be advised that you likely breached your finance agreement by failing to maintain insurance on the vehicle, so once you notify the lender of the "breach," they likely have a right to call the entire note due (depending on the language of the note). Again, the action(s) they take (or forego) is going to depend on the lender.

Good luck to you. Let me know if you have any additional questions. You're welcome to call for a free consultation.

Dom

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7/23/13, 10:49 am
Tricia Dwyer Tricia Dwyer Esq & Assoc PLLC
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Based on all the facts you described, you would be wise to have an attorney negotiate this matter on your behalf. Be extremely cautious regarding considering bankruptcy.

This website provides general information and general principles of law and does not provide private legal advice. Some attorneys are available seven days for emergency legal needs. Many attorneys will confer initially at no charge. Then, if legal work is performed, some attorneys will provide a reduced fee for financial hardship. Some attorneys may also assist you in limited scope manner to conserve legal costs. All the best.

Tricia Dwyer, Esq.

Phone: 612-296-9666

dwyer.tricia@gmail.com

DEBTOR-CREDITOR LAW

FINANCING LAW

INSURANCE LAW

LOAN NEGOTIATION LAW

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8/01/13, 3:47 pm

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