My Husband And I Filed A Chapter 13 Last December, We Are Now Paying 300 A Month.

One of my debts that I did not claim on the chapter 13 is a car that I co own with my son. My son is now about to file a chapter 7 bankruptcy, how will this play out for me? I am willing to give the car back and let the bank sell it, but will the remaining balance be MY responsibility since I am filing a 13?

Answer: I would suggest that you contact your chapter 13 bankruptcy attorney immediately. If you did the filing yourself then this might be a good time to hire an experienced bankruptcy attorney to assist you as chapter 13 bankruptcy filings aren’t as easy as they may seem on the surface.

Once you have contacted your bankruptcy attorney you will want to make sure that ALL of your debts are disclosed in your chapter 13 paperwork. You don’t get the option of what debts you claim in a chapter 13 bankruptcy filing. You MUST list all of your debts and ALL of your assets. Not doing so is perjury, plain and simple. Your bankruptcy attorney will be able to fix your problem (probably) by amending your schedules and plan to include this asset (your son’s car), and the debt associated with it.

If the car is surrendered and the debt is properly discharged, the balance due after selling the car (or deficiency) will be part of your bankruptcy and discharge. There should be an easy fix to this problem but I would definitely recommend seeking the assistance of a chapter 13 bankruptcy attorney to assure that it is done properly.

Answered By:

The Bornmann Law Group – Evan Bornmann
1731 W. Baseline Road, Suite 100
Mesa, AZ 85202
Office: (480) 263-1699

20325 N. 51st Ave., Suite #134
Glendale, AZ 85308
Office: (623) 640-4945

2 East Congress St., Suite 900
Tucson, AZ 85701
Office: (520) 306-8729

Re-Published from AVVO Legal Questions and Answers.