Legal Question in Bankruptcy in Arkansas

Re: Can Remaining Loan on Repo be put under Chapter 13

Hi.

I'm confused by the title of your question, re chapter 13.

You certainly can file for bankruptcy on this debt; issue is whether under divorce agreement or decree, or other agreement, you agreed to pay this debt (which it seems from what you're saying, you did not agree to do, as you talk about ex-wife paying and bouncing check). Reason I'm saying this is that there have been courts that have held that requirement to pay debts t thrid parties such as mortgagees or car lienors are "in the nature of alimony, maintenance or support" and therefore cannot be wiped out by bankrupty. Also, I have a sneaking feeling from what you're writing that you're the only one liable on the car debt, not your wife. In any event, car was repo'd, from what you're saying.

But what kind of bankruptcy - 7 or 13? I think you should arrange consult with local attorney to review your facts, as question whether to file for bankruptcy and what type if you should file is not so simplistically answered as "I have this one debt". It depends on actors such as your other debts, your assets, etc.

PLEASE consult with a local attorney re this, and have ready for him or her answers to questions re your other debt, your assets, whether your ex is liable on this debt, what your obligations are to pay and what you have to pay under agreements with ex, etc.

Good luck!

Neil Ackerman 516-228-8245