Bankruptcy mess

[Brigette]

Hi all,

Here is the situatuion >> I had my car fixed havn't been able to pay. Ended up filing for bankrupcty. Car is still at mechanics. After I filed for bankruptcy he filed for an abandonment title for the car. The car is now impounded. I filed bankruptcy on the mechanic but not on the lean with the bank for the car. What's going to happen to the car? Who's car is it? I didn't abandon the car.

 

[JETX]

Your post is very vague on the realities of this situation. For example, why/how did you file for a 'partial' relief of debts (the mechanic, but not the car)?? If you mean that you have 'reaffirmed' the car debt in lieu of them taking possesion, then you will have to pay for the car (and possibly the repair bill that the lienholder will pay in your behalf to clear the title).

Unless you pay the mechanic for the car, it sounds like you have lost it. By refusing to pay the mechanic for the car, he can obtain an 'abandonment title' by filing a mechanics lien.

In either case, the lienholder and the mechanic will have to work out some mutually acceptable method to determine final ownership AND you will be stuck oweing more money than you currently owe.

Why did you approve the repairs to the car without having funds to pay for them???

 

[Brigette]

Steve,

To answer your last question first, things come up in life that can damper your plans. If I wanted to change your paradigm then i would tell my saga. I will save you the grief.

Here are the realities of the situation. When I filed for bankruptcy I wanted to keep "good standing credit" somewhere. The choice was my credit union. This is the only debt I reaffirmed. The loan however, is secured by the car, but not a car loan. If I understand, correct me if I am wrong, the car will be auctioned to pay 1. Towing and storage fees, 2. Expenses incurred by the police, 3. Amount owed to the secured party, 4. Remainder to registered owner. I went and answered the petition from the court for a hearing to let them know I didn't abandon the car but didn't have the funds to pay. Will the mechanic be a secured party after the court decides to give him an abandonment title? Are you telling me if I fight for the car I will owe the towing, storage, mechanic and the credit union? Would I be better off letting the car go? He filed for an abandonment title AFTER I filed bankruptcy. Does this make a difference?

 

[JETX]

Based on your post, the mechanic has a secured his interest in the car when he filed a mechanics lien on the car.

And yes, you will still be liable for all the costs you listed, PLUS the repair bill (and his added costs which are usually pretty extreme).

Regretfully, it appears that you are in a no-win situation. The mechanic will get paid, either in the remaining proceeds from the sale by your lien holder, or in subsequent possible judgment against you.

One question... was the DEBT (not the billing) incurred PRIOR to your bankruptcy filing??? If so, you might be able to amend your petition (if the case is still open) to include his bill. Talk with your BK attorney. If you can do this, his bill will be stayed by the Bankruptcy court pending final decision.

 

[Brigette]

Thanks for helping Steve.

Steve,

The debt($900) from the mechanic was incurred about 8 months ago now. I filed bankruptcy October 11th. The mechanic filed for a title on November 28th (almost 6 weeks later). I answered the petition for the title with the court on the 18th (yesterday). Now I am waiting for a court date to fight for the car. The bankruptcy is not discharged yet and court proceedings for the car are now starting. Can he file for a title AFTER I filed bankruptcy on the debt I owed him? After I had my Creditor meeting my lawyer told me I could go and get the car. When I went to pick it up the mechanic told me I can't take the car and I can't file on a car I don't own. He said that he and the bank own the car now. Then he seemed a little surprised when I said I reaffirmed with the credit union. I understand he wants his money...that's why the man is in business. Do you think it is in my best interest to let the car go? I don't have a problem doing that at all. Then at least he will get some money.

I would love to talk to my lawyer(After all I paid HIM) but, I have left many messages with no return call.

Thanks for your time Brigette

 

[Brigette]

One more question.....

What kind of judgement could they have against me? (referring to your last letter)

 

[JETX]

Briggette, with all due respect, I can't answer your question as to what is best for you to do in this situation. Only you know the importance of the car, the money, and the possible impact that this could have on your credit history.

For example, if the car is a new Corvette or Ferrari, and the repair bill is $900.00, I would pay the bill and keep the car. However, if it is a Yugo.... I would let the mechanic keep it.

There are far too many variables involved in your situation that prevent it from being absolutely resolved on this forum.

I suggest that you take a step back from the situation and try to view it from an independent, fresh view. Decide the importance (and value) of your car and whether you need (or want) to keep it. Balance that with the realities of the $900 bill. Also, you need to consider that the bill is EIGHT months old. The mechanic has probably incurred some additional costs, and/or storage fees that could change the numbers. Get the facts and sit down and calmly review them.

As to the bankruptcy situation, I do not have a detailed schedule of your filing and its timing relative to the car bill. If the car bill was incurred PRIOR to the bankrupcy petition AND the mechanics lien was applied AFTER, then you can probably get the lien removed and the repair bill included in your filing. However, if you incurred the bill AFTER filing, then the repair bill probably cannot be waived with the filing.

Finally, the outcome of all this is totally contingent on what the bankruptcy ruling is.

 

[Brigette]

Thanks for helping Steve.

Thanks for your time.

Brigette