I am filing bankruptcy with no attorney help. I had bought a vehicle with a loan through my bank. This vehicle has been repossessed. I have an older vehicle with very little value that they secured a lien on for collateral as well. How do I keep this car from being repossessed by the bank when I file bankruptcy?
1 Answer from Attorneys
Generally speaking, if multiple assets, such as your cars, have been cross-collateralized (which means that collateral, like a car, for one loan is also used as collateral for another loan), then it will likely be treated as a Schedule D secured debt in the bankruptcy. You can discharge this type of debt, but generally it requires you to surrender the collateral, which, by the sounds of it, is probably your vehicle.
However, my statements are assuming a lot of things, not the least of which is that the security agreement in the auto loan actually lists your second vehicle specifically or by inference. You really should have an attorney help you with this. Bankruptcy law is intricate and complicated. There is a reason that some attorneys have made a career out of it. It is because it takes years to master and countless hours of research and analysis to understand the underlying issues.
For further thoughts on why you should not be doing this on your own, please review my article at the following webpage: http://bankruptcy.kansasjustice.com/overview/limited-scope-representation-iceberg-ahead/.
Should you be interested in seeking counsel to assist you on your bankruptcy. You can reach my office by calling (888) 506-7021.
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