Legal Question in Bankruptcy in Indiana

Bankruptcy/ personal loan

I sold on agreetment a car to a friend, the were making payments once a month ($200.00). They now have filed Capt 13, to where they want to pay me back through the courts. I dont agree with this, so I got the car, and was holding until , today when we went to court, There attonery are telling me I dont have a choice, that my agreement dont count for anything, now that they have filed bankruptcy. I have to give the car back. We had agreed to pay 200.00 a month for 3 years. There is still a year 1/2 left on that agreement. Dont I have any rights in something like this, to where they still have to keep paying me the 200.00 a month, or just give me my car back?? I didnt have any attoney with me today, so there attonery was being pushing.

Asked on 3/08/07, 2:20 pm

1 Answer from Attorneys

C. David DuMond Law Offices of David DuMond

Re: Bankruptcy/ personal loan

The debtor's attorney probably felt he needed to be pushy to overwhelm your evident unbelief. The sorry fact is that if the car and your debt are in the plan, and if the payment plan provides for full payment of the car loan, you don't have any choice. This happens to all creditors in a Chapter 13 bankruptcy case. By repossessing the car after a bankruptcy, you could be held in contempt of court and be forced to pay several hundred dollars -- even thousands -- of the debtors attorney fees plus return the car. There may be a slight chance for some wiggle room on this, but you will need to hire a lawyer to carefully examine all the facts and the contract, and even then I think your chances of avoiding placement in the Chapter 13 plan are very remote.

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Answered on 3/08/07, 3:27 pm

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