Repossession of vehicle in "no asset" case

What is the name of your state? Oregon

Happy Holidays All!

First, a little background. I filed for bankruptcy without an attorney in October. At my 341a meeting, the trustee deemed my case a "no assest" case. I believe this to mean that all of my debts will be discharged barring any objections from creditors.

Now, on to my predicament...

I originally wanted to keep my vehicle without reaffirming the debt but have decided that I just can't afford to. The vehicle will have to be repossessed.

I am worried that the lender will pursue collection of damages from me since the vehicle in not in running order due to the transmission being removed for repair.

My first question is, does the automatic stay prevent the lender from repossessing my vehicle until after my bankruptcy case has closed?

My next question is, can the lender seek compensation for damages on a repossessed vehicle that has been dishcharged in a bankruptcy?

Thanks!

[HomeGuru]

[quote]Originally posted by swanthog
[b]What is the name of your state? Oregon

Happy Holidays All!

First, a little background. I filed for bankruptcy without an attorney in October. At my 341a meeting, the trustee deemed my case a "no assest" case. I believe this to mean that all of my debts will be discharged barring any objections from creditors.

Now, on to my predicament...

I originally wanted to keep my vehicle without reaffirming the debt but have decided that I just can't afford to. The vehicle will have to be repossessed.

I am worried that the lender will pursue collection of damages from me since the vehicle in not in running order due to the transmission being removed for repair.

My first question is, does the automatic stay prevent the lender from repossessing my vehicle until after my bankruptcy case has closed?

**A: yes.
****

My next question is, can the lender seek compensation for damages on a repossessed vehicle that has been dishcharged in a bankruptcy?

**A: it is possible under certain circumstances.

Thanks!

**A: ok.

What might those circumstances be?

I've been searching Oregon law and have found only this:

"3) Notwithstanding subsection (2) of this section, the
borrower or buyer is liable for damages to the lender or seller
for any repossessed or surrendered goods or motor vehicles that
have been wrongfully damaged."

I suppose that if it's found that I did anything "wrongfull", I would be liable. I guess I'll just have to wait and see.

[HomeGuru]

The lender could claim that you wrongfully damaged the vehicle as it would have no transmission at the time of repo.

swan, you're generally going to be fine, as long as, the transmission damage wasn't done intentionally.