I recently filed chapter 7 in Ohio, Wells Fargo held my loan; which matured a month after i filed. Wells Fargo has written of the balance and has chosen not to reaffirm my loan but has said I should continue payments, my question is will they repossess the vehicle if I dont and with the vehicle being 6 years old and needing repairs. Also if I could payoff balance of $4210 and knowing the courts allowance on cars is $3450 in Ohio will the trustee order me to sell to pay creditors? Ive maintained the insurance on it. This is the last piece to becoming debt free please advise and I greatly appreciate it!
1 Answer from Attorneys
If you do not pay off the loan, the creditor may come repossess the collateral. You are also entitled to redeem the vehicle by paying off the balance to the creditor. The only way that the trustee will actually come after the vehicle is if the vehicle's actual market value is in excess of the exemption limit. So before you redeem the vehicle, you may want to run it's KBB valuation to see how much equity you'll have in the vehicle if you own it outright.
This response is based on the limited facts you have provided and is not intended to create an attorney-client relationship. I cannot provide adequate advice to you without meeting with you in person. If you would like to schedule a free consultation, please feel free to contact me.
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