What can happen if vehicle is repoed after you file bankruptcy?
Both husband and I lost our business because of the economy-in construction. We are unable to collect unemployment. We have an small income coming in from another source. When we could not make a payment in early March we called Ford Motor Credit to discuss the situation. They stated that they were all for working with us they did not want the vehicle back. They would send us paperwork to have the loan rewritten. Never got the paperwork. So we called again asking for the paperwork. Person we talked to said there was nothing listed about that she just wanted payment. We went round in circles. Finally on March 23, we spoke to someone who knew what we were talking about and said the paperwork would definitely go out. Still have not received paperwork. Also explained that we were going to file bankruptcy. Bankruptcy was filed on March 30th. Ford Credit got notification of filing on March 31 though E-mail-verified by attorney. Sunday evening April 5th. 2 thugs came to repo the vehicle. The repo guys thought it would be an easy take. However, the key Ford sent them didn’t work. They were really pissed, came pounding on the door and yelling open the door we want the keys or they would tow it. They were going to get it no matter what. Said we had filed bankruptcy and they could not take it. While I went to get the notice we got from the court. They continued to bang on the door and yell. My son in the meantime called 911. Showed them paperwork we got from the court through the glass door. I am female and these guys were hugh and the way they were acting I felt my safety was in jeopardy. They said the paperwork was garbage and they had a legal court order to take the vehicle. Got notice to pick up the vehicle on the 3rd. Husband came home and they were all over him. Told them all the cops had been called and they got even madder. I told them that they had no right to come to my house, continually bang on the door and yell and they were very threatening where I felt my safety was in issue. They guy rushed towards me and his face came so closed to mine that I could smell his breath. He is twice my size. My son thinking the guy was going to hit me came running up and pushed the guy away from me telling him to get away from me. Then the repo guy also decided to call the cops. Just before the cops came they settled down. I told the cops what happened, said they guys were definitely out of control in the manner in which they did this. Cop said to let them take the vehicle, Ford could be held liable. By the time the repo guys left with the vehicle things were calm. Monday morning we called our attorney, he told us to call Ford Credit and yes they had been notified of the bankruptcy and the paperwork we showed these guys was a legal notice from the court. Just as we were going to call Ford Credit, Ford called. Some guy wanted to discuss the missed payment- which is another violation. He had no clue that we file BK and that the vehicle had been repoed. Stunned-or seemed to be-when I told him of the treatment we received Don’t’ these departments talk to each other. He wanted to know what he could do to make this situation better-guess he was trying to cover for Ford. What recourse if any should we take-have not discussed options with attorney yet? Today we have to call Ford back at a number what was given us to reclaim the vehicle and then call the attorney back. Help, what should we do as far as Ford is concerned? This whole thing has left me a mess, cant sleep, eat, I am still so nervous my hands are shaking. Please save the nasty comments for another time. The repo guys said it all.
To Missy it was the only one payment missed, and as of yesterday it is 2. You got the whole story. Also, attorney said that the vehicle was protected under the bankruptcy code. We can decide if we want to reaffirm or whatever you call it. Attorney also told us to call and get to the vehicle back. At this point, as suggested, I don’ think I want it back.
First off….Your filing of bankruptcy and Ford receving the notice of the bankruptcy automatically ceases them from any actions against you per the bankruptcy laws. Contact your attorney, they have to return the vehicle to you. Do something today as they can auction the vehicle and leave you with no vehicle at all. Although the repo men are doing their jobs, they were way out of line if they treated you the way you stated. Your attorney’s office should be contacting Ford to find out where the vehicle is (most likely) a salvage/auction lot, and Ford needs to release the vehicle to you. They will most likely charge for storage fees as well…even though you are protected with the bk filing. Your attorney may be able to do something about these fees, but, you paid a retainer to your attorney, get them to do what you paid them to do!!! As far as the vehicle being an asset, yes, it’s a asset, but under the bankruptcy protection, you are able to re affirm the loan in a chapter 7, or run it thru a payment plan in a chapter 13. Contact your attorney and get them to do something about it!!
June 15th, 2010 at 9:25 amI could be wrong here, but it was my understanding, that if a customer files bankruptcy, the lender has the choice to take the car back.
Also, my car is actually financed through Ford Credit, they have ALWAYS been very helpful. I was in a bind one month, and they allowed me to defer a payment, no resigning was needed.
So, something tells me we are not getting the entire story here. This must not have been the only payment you missed.
***Well, if you say so, Ford Credit will not repo for ONE missed payment, unless they are unable to contact you, then you might be in trouble, but if you talked to them and told them the situation, they would not have repoed for that one missed payment…..Good luck. : )
June 15th, 2010 at 9:25 amSorry, they were so intimidating and out of control. Your bankruptcy attorney will be your best and most reliable source of information on your options.
I’m not an expert on bankruptcy laws but my understanding is that they can still repo the vehicle. The car was a security for the loan, which means unless you can arrange reasonable payments for the loan and prove that you can make those payments, they can take the car. The bankruptcy can cancel the remaining balance on the loan, but you don’t get to keep a car you never paid for.
Good luck with your job search or business efforts.
June 15th, 2010 at 9:25 amFirst… Please stop worrying about this issue… Meaning, in business you must seperate money from your personal life. You made a business bet and lost. Trust me that you are in good company….
So you know, I have also made business bets as well and lost before… In fact, I lost $85K in one day before because of a very very very stupid mistake. I was left vomiting in a toliet for a couple hours on this one, but years later I just laugh at the idea… Education is always expensive…
In short.. Pick your head up and realize the obvious… You are no less of a person today than you were yesterday. You have a husband that loves you and ultimately that is all that matters. My advice would be to go get a couple of cheap bottles of wine and the two of you just try to relax and try to see the bigger picture….
Good Luck and I Hope this Helps..
June 15th, 2010 at 9:25 amI think you have to either reaffirm the debt or resume the payments in order to keep the car. They bankruptcy might cancel the past due amounts, but not any going forward payments.
Unfortunately in this case, there was so little time between notification of bankruptcy and thugs appearing on the door that it looks like they just were not communicating between departments.
Are you sure you want the car back? Might you make out better if you sell the car and get something smaller or used and with a lower payment?
June 15th, 2010 at 9:25 amIn the UK it is down to the official receiver to decide what to do with your assets, and you don’t get hassled by your creditors.
June 15th, 2010 at 9:25 amMy opinion is that the company was wrong, and that they will get into trouble. Your attorney will deal with any issues from now on.
Tim gave some great advice by the way.