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?
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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
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 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.
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