Bankuptcy Ch 7 Coinciding with Lemon Law/Fraud Case??

[PandoraZx]

What is the name of your state? CA

Hi,

I am in one huge mess...

First, I am being forced to file bankruptcy due to overwhelming medical bills piling up... nearly 50k total.

Anyway, I just found out after 3 breakdowns with my NEW 2004 Dodge Neon (same issue), that it was also once a rental car which the dealer did not disclose, but is required to by law.

I have one bankruptcy lawyer, and one Lemon Law Lawyer ((tongue tied)). I am trying to get them in communication...

But in the mean time... I am wondering if whatever is granted to me ((they take the car back plus pay damages)) will be taken from me because of filing bankruptcy??? I am about one day (literally) from giving my lawyer the last bits of paperwork she needs to file for me...

I have no other assets... just my car... which I need dearly, but broke down for the third time in less than 1000 miles after the starter was last replaced! Out of 2 months, i have not had my car 25% of the time... not including the time it has been in the shop since last Friday.

I need some advice... I can't wait on the bankruptcy, because garnishments are right around the corner, and that 25% is all I have left after bills... car, rented apartment, utilities... to live off of. So... yeah, I know... I am being screwed from both sides here.

Anyone have any advice? I only have another 10,000 miles on my car before the manufacturer's warranty expires and I am left to pay for this crap with money I don't have.

Sincerely,
"I have 'Screw Me' Engraved On My Forehead"

 

[Ladynred]

Since this Lemon Law thing has come up prior to your BK filing date, the expected settlement WILL be part of the bankruptcy estate and the Trustee is probably going to want some piece of it. If you're real lucky, he won't take it all, but that IS his job. You MAY be able to exempt part of it but ask your BK lawyer about that.

Do you have any idea how much money this involves ??

Either way, it sounds like you'd still be better off filing for bankruptcy, despite the loss of any settlement.

 

[PandoraZx]

Since this Lemon Law thing has come up prior to your BK filing date, the expected settlement WILL be part of the bankruptcy estate and the Trustee is probably going to want some piece of it. If you're real lucky, he won't take it all, but that IS his job. You MAY be able to exempt part of it but ask your BK lawyer about that.

Do you have any idea how much money this involves ??

Either way, it sounds like you'd still be better off filing for bankruptcy, despite the loss of any settlement.

All I want out of it is what I have put into the car... my $2000 down, and the amount of the loan to pay off the financing company. This is the only car I have and I need it. If the trustee takes any of the $2000 I paid down, plus any of the financed part, and any of the attorney's fees, I am screwed. I need the $2000 to put down on another car... and even that may not be enough due to my credit. I haven't officially hired a lemon law lawyer yet, just have one I am talking to. If i do the lemon law case after the BK, will they be able to take it then? Or does it even matter when? Thansk for your help...

 

[Ladynred]

If you hold off on the lemon law action until 6 months AFTER you file for BK, then you will be more likely to keep whatever settlement you get out of the thing. The Trustee can go after any 'windfalls' you may get in the 6 months following your filing date.

 

[PandoraZx]

Update - Good News!

If you hold off on the lemon law action until 6 months AFTER you file for BK, then you will be more likely to keep whatever settlement you get out of the thing. The Trustee can go after any 'windfalls' you may get in the 6 months following your filing date.

Thanks for your advice... I finally got both lawyers in communication, and my BK lawyer said she could protect 18-20k from the suit, but, on the good side... since I still owe $10500 on the car, that portion is never awarded to me, but instead the financing company. The lemon law/fraud lawyer said that he demands his fees directly from the manufacturer... so that is never seen... the most I would see is my $2000 i paid down, plus all payments made to date... that comes out to a whopping $3188... which can't be touched according to my BK lawyer. My BK lawyer did say however... if the trustee though he could get upwards of 40k from persuing the case on his own, he may try to go after it... but, not likely!

Thanks for your help!