Thread: Chapter 7, Ohio
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Old 09-24-2007, 08:34 AM
TheJury'sStillOut TheJury'sStillOut is offline
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Originally Posted by jschwegman View Post
The Trustee has ordered we turn over our two cars for Public Sale or we can pay him the (his) estimated value of $11,000 over a 12 month period. That's only $916+ per month.

Can we (I assume we can) buy them back ourselves at the public sale?

Does coming up with the money to do this create other problems?

If purchased, can the Trustee "re-sieze" our cars?
Your questions should be directed to your trustee as each bankruptcy case is different and state laws vary. I don't think it's very likely you'll be permitted to incur the additional debt (doesn't make sense as you had to file for a Chapter 7 for 'debt relief,') and in effect, you've only replaced one asset with another. You've already disclosed your secured/unsecured property with the courts .. I certainly wouldn't advise you attempt a "shell game" without written permission from the trustee. Obviously the court will be aware of the purchaser; you've done nothing more than rearrange the assets and I think it's highly unlikely permission will be granted. (An opinion here, best bet is to check with your trustee.)

A quick question here: are the cars in question owned free and clear or are there liens involved? If there are liens, can you handle the monthly payments and reaffirm that particular payment? (Typically, this is determined before filing the petition.) If that's the case, I'd again suggest you contact your trustee immediately, to see if a modification can be filed. FYI: bankruptcy laws were tightened significantly in 2005; you may not be able to file these particular changes, but I believe it's definitely worth a phonecall. (Unless, of course, you've already explored this before filing for a Chapter 7.)

If the trustee refuses to answer your questions, you may of course want to contact either your original bankruptcy attorney (if you retained one) or find a good one in your area for a quick consultation. Again, due to the potential legal troubles you could potentially encounter, I wouldn't suggest you even consider this one on your own. Just a few suggestions here.

Good luck.
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