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Before my bankruptcy was discharged I got a car loan . Now 1 year later it has been repos and my wages are gonna b garnished

Casa Grande, AZ |

Can they do this ? I talked to someone and they said the purchase might have been illegal since my bankruptcy had not been discharge and might not be responsible for debt

Attorney Answers 4


  1. To my knowledge, there is no law against a creditor granting you a loan while your BK is pending. [Very few WILL do it, however, because they have internal policies against it---they wait until after the discharge comes through. Discuss this problem with your BK attorney. Good luck.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.


  2. "Someone" is often wrong. Assuming you received the loan after you filed a Chapter 7 case, it was not discharged or prohibited and you are liable for the debt.


  3. Supplementing what others said, once you filed for bankruptcy, you were given a fresh start. What you do after that filing date is up to you.

    If you obtained a loan to purchase a car, presumably the lender did its diligence and ran a credit report that showed you filed for bankruptcy. The lender knew that it could lend money to you because you are unable to file chapter 7 again for 8 years.

    The lender is only prohibited from trying to collect on a debt you owe that existed BEFORE you filed bankruptcy. There is no prohibition preventing a lender from entering into a commercial transaction with you after your bankruptcy filing and there is no protection for you to avoiding a loan transaction you could not handle absent fraud, which is unlikely present here.

    Also, these topics were covered in the 2 classes you had to attend either in-person or on-line to meet the requirements to obtain a bankruptcy discharge.

    Ultimately, the burden is on you to understand the consequences of filing for bankruptcy and the financial adjustments you must make including handling your finances after bankruptcy.

    If you had a bankruptcy attorney, you should speak to him or her.


  4. The other answers are correct. You might need to consider a chapter 13 bankruptcy. Please understand that this type of bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. I am attaching a link to some free videos that explain how bankruptcy works. Most Arizona consumer bankruptcy attorneys offer a free consultation about the basics of bankruptcy.

    Please take time to educate yourself about bankruptcy and to determine which attorney is the best to assist you in the process. Don’t assume the attorney is being completely honest about their experience and capabilities. Check them out. Avoid the attorneys who advertise on TV or profess a 100% success rate in their Internet ads. It costs hundreds or thousands of dollars for these ads and someone has to pay for them – the clients. These attorneys mass produce the work and do not offer the client the hands on assistance that is necessary in a well-planned bankruptcy. Normally these firms assign all or most of the work to paralegals and the client rarely talks to an attorney.

    When interviewing the attorney ask them how long they have practiced bankruptcy law. Ask what percentage of their practice is focused on consumer work. Ask whether they are experienced in both chapter 7 and chapter 13 cases. Ask the attorney for references. Ask about their policy of returning phone calls. They should be committed to answering specific questions about your situation and help you understand your options. If, after talking with them you are still confused about the issues you raised, find another attorney. Check them out with the various ranking sources: such as www.AVVO.com, and the State Bar. An attorney is should be your guide through this process. They should educate you, be there to assist you in how to avoid pitfalls and help you plan for your future after bankruptcy. There are hundreds of “bankruptcy” attorneys in Arizona. Of those just a few will fit the criteria set forth above. Again, bankruptcy is a very complicated process and you want to use an attorney who will be there when you need them.

    IF YOU FOUND THIS ANSWER "HELPFUL" or "THE BEST ANSWER," PLEASE MARK IT SO AS AVVO AWARDS THE ATTORNEY POINTS. All attorneys providing answers on this site are donating their time and not financially compensated.

    This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.

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