Legal Question in Bankruptcy in California

Auto Nightmare -"they're towing my car"

I recently filed Chapter 7 bankuptcy in California. I listed my car but wanted to be able to keep it. I continued making payments during the whole proceeding. Discharge was granted about 4 months ago. Last month I got behind one payment. I contacted my finance company and told them I could bring the account current within a week, that Monday. The representative told me that if I didn't have the funds there by 2:00 on Friday the car would be towed. He asked that I bring in a check and told me that it wouldn't be deposited until Monday anyways. My car was towed that Friday night. When I called them today they said they called the bank on Friday and there was no funds. What can I do?? Do they have the right to come and take the car so quickly? They are going to auction the car if I dont come up with all the money. If I let them keep it, am I responsible for any balance due if they dont get enough on the sale.

Thanks for any help.


Asked on 9/11/00, 9:14 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Auto Nightmare -

Your question is not a bankruptcy question, it is a state law repossession question, and I really don't have enough experience in that area to answer. Their security interest in the vehicle remains after the bankruptcy, so they can repossess it the same way as the could before you filed. However, you will NOT have to pay any deficiency on your loan balance after they take back the car, since that debt was likely discharged in your bankruptcy.

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Answered on 10/14/00, 2:40 am


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