BILL'S ANSWER
When you surrender a car to the creditor, it will auction the car usually for less than the balance of your loan. This is called a deficiency balance. Read your loan documents to see what you agreed to regarding a deficiency balance. In most states, you are responsible for any deficiency balance resulting from repossession.
What can you do about this? If you had purchased this car before the bankruptcy, it might be possible for your bankruptcy attorney to ask the court to reopen your case and add the car loan to the bankruptcy. However, if you purchased the car after your bankruptcy, I believe it would be all but impossible to add this to the bankruptcy. However, I am not your attorney, and this is a question you should ask him or her. To read more information about bankruptcy visit the bills.com Bankruptcy page.
On a similar note, I do not believe that filing a new bankruptcy petition will be available to you, given that you filed a little more than a year ago. Bankruptcy is designed to be rare event, and not an annual subscription. However, if you were beset by an unexpected calamity the court may allow you to file a second bankruptcy after such a brief period. Again, that's a question for your attorney to ponder.
For the sake of argument, let us assume you cannot file for bankruptcy again. What do you do with the deficiency balance? Talk to the creditor (CPS) and work out a payment plan. They may make intimidating statements that frighten you. Arm yourself with strategies and tactics to level the playing field by understanding debt negotiation techniques. Here's a good Bills.com article to get you started: Debt Negotiation and Settlement
I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
July 29, 2010
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