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Losing vehicle after filing for Chapter 7

El Paso, TX |

I recently filed for Chapter 7, I only did so after I was assured by my attorney that I would not lose my home or vehicle. Apparently my case has been discharged and now Ford Motor is wanting to take possesion of the vehicle, I signed a reaffirmation agreement for the and my attorney is claiming that Ford will not abide by it, I think that my attorney did not get me to sign the agreement in the time allowed and that is where my trouble is starting, is there anything I can do? I think they want to take the vehicle immediately.

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Attorney answers 3


I would suggest that you review your bankruptcy case online to see what documents where filed and when they were filed.

Follow the link below to get online access to your bankruptcy records. You will need to submit a debit card, as there is a small fee to get this access but it is a lot less expensive than going to the Courthouse & paying for parking.

Hope this perspective helps!


First, I agree with Dorothy you need to figure what was filed and when.

Second, Ford is difficult when it comes to cars and insists debtors sign a reaffirmation. The relevant law is Bankruptcy Rule 4008 which provides:

(a) Filing of reaffirmation agreement. A reaffirmation agreement shall be filed no later than 60 days after the first date set for the meeting of creditors under § 341(a) of the Code. The reaffirmation agreement shall be accompanied by a cover sheet, prepared as prescribed by the appropriate Official Form. The court may, at any time and in its discretion, enlarge the time to file a reaffirmation agreement.

Reading the last sentence, you will see the judge can extend the time which can retroactively make the reaffirmation valid and timely. I have had one judge grant my request under rule 4008 and another judge deny it.

So, if the reaffirmation was filed too late your attorney can ask the judge to extend the time which would make it valid.

Law Office of Michael J. Primus We are a debt relief agency and help people file for bankruptcy under the bankruptcy laws


I agree with the above attorney's but want to add the following:

When filing for bankruptcy, you may have the continued obligation to make payments to certain secured debt that you wish to retain (ex. house, car) - Further, when filing for bankruptcy, it is common that any automatic payments will cease - as such, you will have to manually make these payments.

Thus: If you had an automatic payment set up for this vehicle prior to filing bankruptcy - thereafter timely signed and filed the reaffirmation agreement - but failed to make any subsequent loan payments - the secured creditor may wish to take back the vehicle.

I would suggest - in addition to the other advice you have received - double check any payments made to Ford.

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