What a mess, what to do, BK, Repo, deficiency Help

[lucyloo]

Asking this questions for my brother-in-law, about 6 years ago they filed bk, chapter 7, included in it was a boat, NOT REAFFIRMED. Anyway time goes by, there were some issues with B of A being sold or merging with another lender, they loose their account info, B of A, never contacts them, their checks are being held off in la-la land and not being credited, when contacted B of A has no idea who they are or where there money is, eventually they stopped making payments, waiting on some info. It finally caught up with them, well after a year, they agreed to make the payments (got an address and acct number to send to), after a few years, they got 1 month (yes really " 1 " month) behind and B of A came and repo'd it, (what was funny was that B of A, still did not have there correct address, and thought it had been picked up 2 weeks b4 it had, what a joke). Anyway they were tired of fighting it, and let it go.

We know it was sold at an auction, and even how much it was sold for. Today they called my sister at work and my brother in law at home, trying to get them to pay the difficiency . So to my question, what should be said or not said to these people.

When brother stated it was included in BK, B of A had no clue or record of this...............HELP

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[chincheck]

Your bro-in-law needs to track down the BK paperwork. Contact the lawyer if he hired one, or contact the court where it was filed.

The sticky part is they made payments on the boat after it was IIB. IMO, that could possibly negate the boat's IIB status. Since BofA apparently has less paperwork than your bro-in-law, this may not be a problem after all. He may just need to show BofA paperwork of the account IIB, and that should be the end of it.

[Robert Nashville/Savannah]

I agree...if it was included in a chapeter 7 bankruptcy then that should be the end of the story - that's what chapter 7 is for.

I think tracking down the paperwork, his attorney and/or the court should put this to rest regardless of what records BoA has or doesn't have (and the fewer they have the better off for your brother-in-law...I'm assuming, of course, that your brotther-in-law's attorney/the court did the proper notifications, etc. If they didn't they your brother-in-law might be on the hook but should have an action against the attorney/court for not doing their jobs!

[willingtocope]

Actually, according to NOLO PRESS's book "How to file Chapter 7 Bankruptcy" even debts that aren't specifically listed on the BK schedules are still discharged. In most case, you only need send the creditor a copy of the papers afterwards, in some case (if the creditor balks) you may have to amend the paperwork. But...bottom line...all debts that were not officially reaffirmed were discharged at that time. Making payments doesn't automatically reaffirm...so...

[LadynRed]

The sticky part is they made payments on the boat after it was IIB. IMO, that could possibly negate the boat's IIB status.

Absolutely NOTHING sticky about it. NOTHING negates the discharge. He got what they call a 'walk through" on the boat.. no reaff, the debt was discharged, but they let them keep it because they kept paying. Payments post-discharge negate NOTHING. The BK law does not prohibit you from VOLUNTARILY paying on a discharged debt - which is what they were doing.

As advised, he needs to get his BK papers from the court. If they've been archived already, they can get a form to get them from the archives and have them in about 2 weeks. Costs about $10-15. Or, he could sign up on PACER and see if they're available electronically.