Debtor liable for Auto Deficiency?
Posted: Wed Sep 12, 2012 3:25 pm
thank you
Kenneth Jay Schwartz, Esq.
LAW OFFICE OF KENNETH JAY SCHWARTZ
21031 Ventura Boulevard, Suite 640
Woodland Hills, California 91364-2226
Telephone: (818) 226-1205
Facsimile : (818) 226-1213
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THANK YOU.
________________________________
To: "cdcbaa@yahoogroups.com"
Cc: "ngebelt@goodbye2debt.com"
Sent: Wed, September 12, 2012 3:16:04 PM
Subject: RE: [cdcbaa] Debtor liable for Auto Deficiency?
Oops. I left out the word NOT in the second paragraph. Heres the corrected
version.
Dear Kenneth,
The creditor still retains an in rem claim against the car, so its not as if it
is without any recourse.
However, in the absence of debt reaffirmation pursuant to 524(c) (observe that
personam
claim is extinguished with the Chapter 13 discharge pursuant to 524(a)(2).
Note in particular the use of the phrase only if in the debtor committed to making payments outside of the plan does NOTresurrect
the in personam liability. Only a reaffirmation of the debt satisfying all six
of the conditions listed in 524(c) will do that because of the end of 524(c)(5).
Nick
Nicholas Gebelt, Ph.D., J.D.
Board Certified Bankruptcy Specialist
Law Offices of Nicholas Gebelt
15150 Hornell Street
Whittier, CA 90604
Phone: 562.777.9159
FAX: 562.946.1365
Email: ngebelt@goodbye2debt.com; ngebelt@gebeltlaw.com
Web: www.goodbye2debt.com
Blog: www.southerncaliforniabankruptcylawblog.com/
We are a debt relief agency. We help people file for bankruptcy relief under
the Bankruptcy Code.
Confidentiality Note: This e-mail is intended only for the person or entity to
which it is addressed and may contain information that is privileged,
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distribution, or copying of this e-mail or the information herein by anyoneother than the intended recipient, or an employee or agent responsible fordelivering the message to the intended recipient, is prohibited. If you have
received this e-mail in error, please notify us immediately at 562.777.9159 or
e-mail info@gebeltlaw.comand destroy the original message and all copies.
Representation Note: If you have not signed a contract of representation, the
Law Offices of Nicholas Gebelt do not represent you, and this email does not
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the Internal Revenue code, or (ii) promoting, marketing, or recommending toanother party any transaction or matter addressed herein.
From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Kenneth
Jay Schwartz
Sent: Wednesday, September 12, 2012 11:59 AM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Debtor liable for Auto Deficiency?
Thank you Nick. I guess I am having a hard time squaring this the Debtor
committing to make ALL payments out side of the Plan. This presumably binds the
debtor to being liable for the full amount of the claim
Kenneth Jay Schwartz, Esq.
LAW OFFICE OF KENNETH JAY SCHWARTZ
21031 Ventura Boulevard, Suite 640
Woodland Hills, California 91364-2226
Telephone: (818) 226-1205
Facsimile : (818) 226-1213
THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND
CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY BE
AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND CONFIDENTIAL.
IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGENT
RESPONSIBLE FOR DELIVERING IT TO THE DESIGNATED RECIPIENT, YOU ARE HEREBY
NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW,DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED.
IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY.
THANK YOU.
________________________________
From:Nicholas Gebelt
To: "cdcbaa@yahoogroups.com"
Cc: "ngebelt@goodbye2debt.com"
Sent: Wed, September 12, 2012 11:48:57 AM
Subject: RE: [cdcbaa] Debtor liable for Auto Deficiency?
Dear Kenneth,
If the debtor took out the loan prepetition (perhaps because the plan was 36
months, or the loan was for more than 60 months), then pursuant to 524(a)(2)
the debtors personal liability i.e., the in personam claim was discharged.
If the loan was a postpetition loan, then the in personam claim was not
extinguished with the discharge, and the debtor is liable for the deficiency.
Nick
Nicholas Gebelt, Ph.D., J.D.
Board Certified Bankruptcy Specialist
Law Offices of Nicholas Gebelt
15150 Hornell Street
Whittier, CA 90604
Phone: 562.777.9159
FAX: 562.946.1365
Email: ngebelt@goodbye2debt.com; ngebelt@gebeltlaw.com
Web: www.goodbye2debt.com
Blog: www.southerncaliforniabankruptcylawblog.com/
We are a debt relief agency. We help people file for bankruptcy relief under
the Bankruptcy Code.
Confidentiality Note: This e-mail is intended only for the person or entity to
which it is addressed and may contain information that is privileged,
confidential, or otherwise protected from disclosure. Dissemination,
distribution, or copying of this e-mail or the information herein by anyoneother than the intended recipient, or an employee or agent responsible fordelivering the message to the intended recipient, is prohibited. If you have
received this e-mail in error, please notify us immediately at 562.777.9159 or
e-mail info@gebeltlaw.comand destroy the original message and all copies.
Representation Note: If you have not signed a contract of representation, the
Law Offices of Nicholas Gebelt do not represent you, and this email does not
contain any legal advice for you.
IRS Circular 230 Disclosure: In order to comply with the requirements imposed
by the Internal Revenue Service, we inform you that any U.S. tax advice
contained in this communication (including any attachments) is not intended to
be used, and cannot be used, for the purpose of (i) avoiding penalties under
the Internal Revenue code, or (ii) promoting, marketing, or recommending toanother party any transaction or matter addressed herein.
From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Kenneth
Schwartz
Sent: Wednesday, September 12, 2012 9:34 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Debtor liable for Auto Deficiency?
Debtor pays vehicle lender outside of Chapter 13 Plan. Plan is completed and
debtor receives discharge. Debtor later defaults on vehicle contract and car is
repossessed. Is debtor liable for a deficiency?
thank you Kenneth Jay Schwartz, Esq.LAW OFFICE OF KENNETH JAY SCHWARTZ21031 Ventura Boulevard, Suite 640Woodland Hills, California 91364-2226Telephone: (818) 226-1205Facsimile : (818) 226-1213THE INFORMATION CONTAINED IN THIS E-MAIL IS INTENDED ONLY FOR THE PERSONAL AND CONFIDENTIAL USE OF THE DESIGNATED RECIPIENT(S) NAMED ABOVE. THIS MESSAGE MAY BE AN ATTORNEY-CLIENT COMMUNICATION, AND, AS SUCH, IS PRIVILEGED AND CONFIDENTIAL. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT OR AN AGENT RESPONSIBLE FOR DELIVERING IT TO THE DESIGNATED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT YOU HAVE RECEIVED THIS E-MAIL IN ERROR, AND THAT ANY REVIEW, DISSEMINATION, DISTRIBUTION OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED. IF
YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY. THANK YOU.From: Nicholas Gebelt <ngebelt@gebeltlaw.com>To: "cdcbaa@yahoogroups.com" <cdcbaa@yahoogroups.com>Cc: "ngebelt@goodbye2debt.com" <ngebelt@goodbye2debt.com>Sent: Wed, September 12, 2012 3:16:04 PMSubject: RE: [cdcbaa] Debtor liable for Auto Deficiency?
Oops. I left out the word NOT in the second paragraph. Here
Dear Kenneth,
The creditor still retains an
in rem claim against the car, so its not as if it is without any recourse.
However, in the absence of debt reaffirmation pursuant to 524(c) (observe that 524(c)(1) includes Chapter 13 discharges within its
ambit), the in personam claim is extinguished with the Chapter 13 discharge pursuant to 524(a)(2). Note in particular the use of the phrase only if in 524(c). Just because the debtor committed to making payments outside of the plan does
NOT
resurrect the in personam
liability. Only a reaffirmation of the debt satisfying all six of the conditions listed in 524(c) will do that because of the and at the end of 524(c)(5).
Nick
Nicholas Gebelt, Ph.D., J.D.
Board Certified Bankruptcy Specialist
Law Offices of Nicholas Gebelt
15150 Hornell Street
Whittier, CA 90604
Phone: 562.777.9159
FAX: 562.946.1365
Email:
ngebelt@goodbye2debt.com;
ngebelt@gebeltlaw.com
Web:
The post was migrated from Yahoo.
