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Old 10-02-2011, 08:00 AM   #1
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Hi all I have a question that a friend of mine asked me. He had filed chapter 7 and his debt was discharged. He owns his car (paid off) and now his house is in foreclosure. Can the mortgage company take his car too? I told him that I didn't think so becouse the car is his free and clear. He said that that is what he is affraid of, he doesnt want the mortgage company to take his car and sell it to recoup any money from the missed mortgage payments. He hasnt paid his mortgage in over a year due to loss of work. Any info. is greatly appreciated.

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Old 10-02-2011, 08:00 AM   #2
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Hi all I have a question that a friend of mine asked me. He had filed chapter 7 and his debt was discharged. He owns his car (paid off) and now his house is in foreclosure. Can the mortgage company take his car too? I told him that I didn't think so becouse the car is his free and clear. He said that that is what he is affraid of, he doesnt want the mortgage company to take his car and sell it to recoup any money from the missed mortgage payments. He hasnt paid his mortgage in over a year due to loss of work. Any info. is greatly appreciated.
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2005 5.7 HEMI RC/SB 4X4
Stock 20" tires and rims
aFe High Breather
Magnaflow Cat-back exhaust
30% tint
Amsoiled Everything
Nasta step bars
Torsion bar lift (re-keyed)
Line-X spray-in bed liner
Extang Trifecta Tonneau

9/11 Neither Forgive nor Forget.

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Old 10-02-2011, 08:11 AM   #3
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Federal exemptions allow a homestead exemptions and a personal vehicle per party. One for wife, one for husband. If he is discharged, he is no longer under protection of the bankruptcy stay for any debts he chose to reaffirm.

Mortgage companies generally do not go after personal property. That being said, after the house is foreclosed and auctioned and there is a deficit, then there may be a suit or judgment entered for the deficiency and depending upon the laws of the state where he resides, a civil judgment is subject to execution and at that time, an order of execution can be entered if property is found. He's best to consult an attorney familiar with the laws of the state where he resides

That's how it stood when I was a legal assistant, but it has been 6+ years since then.
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Old 10-02-2011, 09:02 AM   #4
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That's the way it was here too, but like Lori, it's been so many years and the laws have changed since I retired.
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Old 10-02-2011, 10:55 AM   #5
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I told him to talk to his bankruptcy attorney, but that was late friday night. So are you also saying, when the foreclosure goes through and he tries to sell his car afterwards the bank will get the money for the sale? As far as I know he didnt reafirm anything, he was thinking about it but never did.
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2005 5.7 HEMI RC/SB 4X4
Stock 20" tires and rims
aFe High Breather
Magnaflow Cat-back exhaust
30% tint
Amsoiled Everything
Nasta step bars
Torsion bar lift (re-keyed)
Line-X spray-in bed liner
Extang Trifecta Tonneau

9/11 Neither Forgive nor Forget.

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Old 10-03-2011, 06:16 PM   #6
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I can't tell you what the law says, but I can give you what my personal experience was. Our house was foreclosed on in MD in 2008. I had one car that was paid for, and my truck, that had a loan on. The bank didn't say anything to me about either of them.
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Old 10-03-2011, 06:44 PM   #7
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I didn't mean that if he sold his car the bank would get the money. What I was referring to was if the mortgage company was going to be a butt about it, they COULD get judgment for the deficiency left after auction. He really only needs to worry about property being seized if a civil judgment is entered against him. That would be a ways down the road. I doubt he's got anything to worry about. That said, nothing any of us have said here can be construed as "legal advice" We can just share our experiences and what we know to be true in our own states. I wish him good luck. It's gotta be heartbreaking to be going through such a thing.
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Flowmaster 40 - GRRRR. 3rd Strike CAI.... hmm.... what's next?

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