What are my rights if my Chapter 7 was discharged and the credit union sold mycar for more than I owed but kept the difference?

UPDATED: Sep 5, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 5, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What are my rights if my Chapter 7 was discharged and the credit union sold mycar for more than I owed but kept the difference?

The credit union stated that my loan was cross collateralized with a credit card. However, the credit card bill was discharged. The car was sold after the discharge and I received a breakdown of charges when it sold. Nothing was stated about applying any surplus to the card. I called and asked where the funds went and was then told about the money being applied to my bill (which again was discharged in the bankruptcy)

Asked on September 5, 2012 under Bankruptcy Law, Nevada


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Under federal bankruptcy laws, if your debts were discharged in a Chapter 7 bankruptcy where your vehicle was repossessed but there was no deficiency owed, but rather the car was sold at auction for more than the loan's balance leaving an excess, under the laws of all states in this country you would be entitled to this excess.

I would make a written demand upon your credit union for this excess to be paid by you by a certain date. Keep a copy of this letter for future use and need. If not paid by the demand date, you recourse is possibly a small claims court action against the credit union for the amount left over after the vehicle's auction.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption