Continuing Creditor harassment post-bankruptcy

What is the name of your state? SC

Continuing creditor harassment post-bankruptcy

In 1998, my husband and I needed a used automobile that would accept my handcontrols and wheelchair car topper. Because SC has property tax exemption laws for handicapped individuals, I asked for the car to be put in my name. The lender said no, due to my ex-husband's filing for bankruptcy, it had "rubbed off" onto my credit. So the car was put in my new husband's name and we have paid over $1000 to date in needless property taxes.

In 2001, my newly unemployed husband and I had our income reduced to a fifth of what it had been -- just around the poverty level -- exhausted our assets, couldn't pay the debts we'd accumulated as middle-class people. The bank holding the car note began to harass us, and I was receiving 34 collection calls a day from creditors. We asked them not to do that because I'm severely disabled and have a hard time getting to the phone 34 times a day. We wrote registered letters, but the calls and written "demands" from this bank and their attorneys continued.

In 2001 we filed for bankruptcy. Our creditors were notified by our attorney. We listed this creditor as one whom we wanted to discharge, but we wanted to keep the car, which was listed with its handicapped equipment, so we declared it handicapped-exempt. Our discharge in the spring of 2001 reflected this arrangement and all our creditors were again notified.

This bank continued to write us harassing letters demanding return of the car. When we explained again it was handicapped-exempt, they demanded payment of the balance due, which had been discharged in bankruptcy. They threatened to come get the car and we had to keep it behind a locked fence, away from my using it.

Eventually a law firm for the bank sued us for the amount, plus their usurious "legal fees" for writing the letters, opening my letters, writing letters that they shouldn't have been writing in the first place. We filed our response to the suit within the prescribed 30 days, but they claim not to have gotten the certified-mail copy.

Then, more strangely, a second law firm for the bank , which had taken over the collection attempts, wrote us a letter saying they realized the principal "due" was discharged, so they'd just take back my car -- which, as you recall, was exempt.

We still have to fight the first set of lawyers' suit requesting summary judgement, since they claim they didn't receive our reply. (They sent the return receipt back unsigned.) I wonder if we can countersue for harassment, for presentation of the title -- which would entitle me to register it in my name -- for excess taxes paid, legal fees to fight a case that isn't a case at all, and the harassment that continued by mail before, during and after our discharge.

What do you think? We have their original letters, copies of our responses and the registered receipts signed therefor.

I know SC is the "just bend over" state, but I'm really in pieces over this.

Thanks!
Eliz.

[Ladynred]

Where is your bankruptcy lawyer in all of this ?? Have you contacted him about any of this ?

I don't know how it works when discharging a loan on a vehicle that is 'handicapped exempt'. I DO know that if you have a loan for a car discharged, but you keep paying for the car, they usually let you keep if. If you decide to later, you can then give up the car and you are not liable for any amounts whatsoever. They cannot sue you for a debt that was discharged.

You seem to be saying that you discharged the debt on the car loan, but you've kept the car without paying for it ??? No wonder they want their money and have sued you !

The car's equity was probably exempt due to SC's handicap exemption. However, thet doesn't mean that you do not still owe the lender the balance due on the loan.

The handicap exemption did not relieve you from your responsibility to pay off the car loan. You still owe the money. If you fail to pay, the lender is within their legal rights to repo the car and sue you for any balance due.

When you reaffirmed the car loan in bankruptcy court, you allowed the loan contract to survive the bankruptcy process.

You have two choices:

1. Catch up on the payments and continue to make them.
2. Expect the car to be repo'ed someday.

It's not your car until you pay off the loan.