Chapter 7, Ohio

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.

This is confusing. If you HAVE eleven thousand dollars to spend to buy them BACK, why not just GIVE the trustee the money to pay the debt the car sale was going to be used for in the first place?

In re-reading your post, I'm seeing the trustee has already offered you terms of repayment of $915/month for a total of $11,000.00, correct? If that's the case, it's probably the "bottom line" the courts will accept, regardless who purchases the autos. It stands to reason they'd like to see more from a public sale, but I'd lay odds they've already offered you the "best deal" you're going to get. (Without having the 'particulars' in your case, I'm just offering a possibility here, but it could well consist of the final, settled payoff amounts.) It's also probably a more manageable monthly figure than any reaffirmation agreement I previously mentioned, given the "only" you posted above.

All of this can be confirmed with your court appointed trustee. Ask him where the figure came from. When it comes to acting outside the boundaries of the bankruptcy, I think all questions should be directed to the courts first and foremost, so you don't inadvertently jeopardize your position there. If "coming up with more money" would include undisclosed assets for example, (part of the 'shell game' I previously mentioned) you could find yourself a in real legal and financial nightmare. Talk to your trustee...or at the very least, a bankruptcy attorney. *Personally, I'd recommend you try your trustee first to keep out-of-pocket expenses to a minimum.

Hope the clarification/additional suggestions help. Again, good luck.

Forgive me for belaboring the one question that makes all of the rest of this irrelevant:

IF YOU HAVE THE MONEY TO "RE-BUY" THE CARS, WHY NOT SIMPLY GIVE THAT MONEY TO THE TRUSTEE AND KEEP YOUR CARS?"

If you have access to money that would allow you to buy back your cars, why not simply give it to satisy the debt?