Ex-wife causing problems trying to sell part of the BK estate during open Chapter 7

[nigolnikufesin]

What is the name of your state (only U.S. law)? IN

I have a very odd situation…..I think.

I filed Chapter 7 bankruptcy in July 2008. Everything went smoothly and I was waiting for my 341 meeting to come up in September. Then, on August 11th, I received a call from my ex mother-in-law and she wanted me to meet her at the local bank to have me sign a power of attorney on my ex-wife's car. I said, "OK" and then I began thinking. Great time for the ex to decide that she wants to trade her car off.

The next day I decided to contact my BK lawyer because although she received possession of the car, I am still on the hook with the creditors and my name is still on the title. It's listed in my bankruptcy petition and is part of my bankruptcy estate. I was instructed by my lawyer not to sign the power of attorney. If she trades the car and they give her more than its worth (and they could because the payoff amount is quite a bit lower than Edmunds, KBB, and NADA trade-in values), then the trustee may be able to take part of the excess cash to distribute to creditors. My ex-wife then decides to call me (she is listed as a creditor on my petition) even though she is not to contact me through the automatic stay period. I also have a voicemail that she left detailing the fact that she received my BK paperwork and then proceeds to ask me to turn over property included in the BK estate to her (I have a nice MP3 of that).

A few days go by and I figured that she just gave up on it. However, in her typical fashion of having to have something new, she took possession of a new car and all of the financing paperwork is in limbo until something happens with my name on the title. Fearing that she would have to turn her new car is, she hired a lawyer who sent me a 10-page document stating the following:

- That she and her mother had contacted me several times to release my name from the loan and the title to her 2006 ******* ** starting on 8/11.
- They are getting a "commissioner" appointed who will sign paperwork in lieu of me signing it.
- I will be liable for her lawyer fees, court costs, etc.

I've turned this paperwork over to my BK lawyer, but I was wondering does she really have anything to stand on? I'm guessing that she selectively "forgot" to inform her lawyer that I was in bankruptcy. Otherwise, he wouldn't blantantly state in his paperwork about her multiple attempts to call me, etc.

[Ladynred]

No, she hasn't a leg to stand on. the bankruptcy pretty much trumps everything since the car is part of your bankruptcy, and is under the control of the Trustee - not you. Her lawyer needs to be informed of your bankruptcy and the status of the vehicle as property of the Bk estate... the Trustee won't be thrilled over her and her lawyers actions.