Question: My BMW got repossessed a week ago. I was only 2 months behind on my BMW payment and the bank came and took my car. I told them I would pay but I needed some time to get some money. My father said he would give me a loan. My boss said he'd give me some money. I saved for the BMW for like two years. It was the Ultimate Driving Machine for the 6 months I owned it.
The car repo people said that I still have to pay them money. They said they would sell it and I'll owe them some money. But I don't want to pay because I can't drive the car. How much do I owe BMW? Can I get rid of it in a bankruptcy? I need to go bankrupt.
Answer: After a car repo, the finance company can seek to collect on a deficiency. That is, they can sue you for the difference between what you owe on the car and how much they sell the automobile for.
Here is an example: You owe $20,000.00 to the bank for the car. They come and repo the car. They sell the car for $12,000.00. You would owe the bank the difference between the two amounts, which is $8,000.00.
You can eliminate that debt by filing for bankruptcy. If you file a chapter 7, then the debt is fully discharged. Many people file bankruptcy to get rid of debt that is owed because of a repo.
We at the Sherman Law Group are experienced bankruptcy attorneys. We try to answer as many questions as possible on our blog. If you have a question, email it to us and we'll do our best to answer it. No names will be used. Speak to an experienced and knowledgeable Atlanta metro area bankruptcy lawyer at the Sherman Law Group by calling (678) 712-8561. We have offices throughout the region, including in Roswell, Alpharetta and Cumming.