2 cars 2 separate loans same bank?:
Car A took a hit during covid bank deferred payment then a repo occurred. I helped my son retrieve the car back after $4k. The car is 3x over the original loan amount and he can not afford the car. He wants to do a voluntary repo and turn the car back in or Bankruptcy..
Car B loan is paid less $350 to get title back. Can the bank keep the title and hold it hostage?
Gary’s answer:
No, they cannot hold the title on the other car to try to collect for the car that is being repo'd. As long as they are two separate loans, there is no way they can legally hold the title on the car when it is paid for. As to the car that will be reposessed, that debt would be dischargeable in bankruptcy if that is the best option. Whether bankruptcy is the right choice will depend on many factors, including what he has in assets, his income, and the amount and nature of his debts.
I hope that helps.
Can I prevent going to court with synchrony bank after being served summons ?:
Hello, I’m in California. I just received a summons from synchrony bank on debt I owe from an Amazon credit card. Obviously I’m kicking myself for not taking care of this sooner, and very anxious about what I should do. This debt got out of hand after I bought a condo, lost my job during Covid, and starting living on credit cards and student loans to get by while also trying to pay a custody attorney. I have full custody of my daughter and am constantly busy taking care of her and all of my other responsibilities, not an excuse but please don’t judge me too harshly.
Today is 2/25 and the court docs are stamped 2/5. It says I have 30 days to write a legal written response.
-What would I even write?
-Do I have to respond to the court or should I just try to work it out with synchrony?
-Is it too late to reach out to their law firm and try to settle or develop a payment plan?
-If they do allow me to settle or make a payment plan, what proof do I ask for and do I provide it to the court?
-Any advice?
I’m so scared a lien will be put on my condo or I’ll be forced to pay a lump sum I don’t have and a massive amount of court fees.
Gary’s answer:
You are completely normal and not a "bad person" simply because things happened to you that were beyond your control. You are taking care of what is important: your daughter. That is where your responsibilities are.
You have several options. However, some are better than others. You can:
1. file an answer to the complaint. That would buy you time, but that will not solve the problem if you actually owe the debt. You have 30 days from when it was served on you, not when it was filed with the court, to file your answer.
2. Try to negotiate a payment schedule with the attorney. That is assuming they would negotiate. Unfortunately, if you are just getting by now, where would the money come from to make payments? Out of money that you really need to properly care for your daughter?
3. Try one of these so-called debt relief companies. The problem is that when you have already been sued, these companies can rarely help. On top of that, trying to put out a fire on one tree (this debt) does not help if the rest of the forest is going to catch fire or has already done so.
4. You can file a Chapter 13 reorganization to control your debts and pay some or all of the debt over 3-5 years. The negative to this is that you are in financial limbo during that time and not able to rebuild your credit.
5. If the situation is appropriate, you could file a Chapter 7 bankruptcy, get rid of all your dischargeable debts, and immediately start rebuilding your credit. Often that is the best choice.
I would highly recommend that you speak to a highly skilled bankruptcy attorney who will discuss with you all your options after looking at your complete situation. I hope this helps you to determine what is best for you.
Do I have to disclose room rental income in chapter 7?: I own a home and rent out two rooms in my house but it goes to pay the mortgage, Do I need to disclose it as income for my chapter 7 filing? I’m afraid I won’t qualify since I’m close
Gary’s answer: the simple answer is yes; you do have to disclose ALL income, no matter the source. I highly recommend that you have a competent bankruptcy attorney go over your rights and obligations with you.