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Bankruptcy - After Discharge

Discuss the legalities of Bankruptcy Law

Bankruptcy - After Discharge

Postby Dewain » Thu Nov 10, 2016 4:19 am

My bankruptcy has been discharged, but I have a few questions. Unfortunately my attorney has not been very helpful since the bankruptcy was filed. 1 - What is the effective date of a bankruptcy - the date filed, date of creditor's meeting, or the discharge date?  Let us use a utility as an example:  Does the bill stop on the filing date or when the bankruptcy has been discharged?  How do they start a new contract/bill?  

2 - If a creditor is in possession of a check at the time he receives his notice of bankruptcy, can he legally cash the check?  I have read that once a bankruptcy has been filed, no collection efforts are allowed.  Is this when the balance is written off?  If the balance is zero before cashing the check, is he obligated to return it or void it out.  

3 - Does an auto mechanic have to release a vehicle that has been repaired?  If so, when? Is he obligated to notify the owner when they can pick the vehicle up?  When can he start charging storage fees?

4 - Is there any legal steps I can take to get the car returned?     I have searched the internet and called the bankruptcy courts to find a place to research my questions to no avail.   I have asked my previous attorney a few questions, but he does not feel it is part of filing my bankruptcy.  I realize some of the rules vary depending on the state, but I would appreciate any input you can give me.     Also, since my bankruptcy has been discharged; is there anything I can do about my student loans due to my disability? Thank you for your time in assisting others and any advice you provide.

ANSWER: My bankruptcy has been discharged, but I have a few questions. Unfortunately my attorney has not been very helpful since the bankruptcy was filed. 1 - What is the effective date of a bankruptcy - the date filed, date of creditor's meeting, or the discharge date?  Let us use a utility as an example:  Does the bill stop on the filing date or when the bankruptcy has been discharged?  How do they start a new contract/bill?

The "effective" date depends on what you are talking about.   The filing date is the effective date in terms of your getting immediate protection, but the discharge date is the date on which the debt is actually discharged(i.e., rendered uncollectible).   As for utilities, they are dischargeable, but the discharge will only apply to the amount that was due up until the filing date.  What they do is open you a new account as of the date that you filed.  

2 - If a creditor is in possession of a check at the time he receives his notice of bankruptcy, can he legally cash the check?  I have read that once a bankruptcy has been filed, no collection efforts are allowed.  

He can cash it.    He has the check.    That doesn't mean that all financial activity stops.   He already has the check.    There are circumstances in which the bankruptcy trustee can request that the money be returned(as an unlawful preferential payment to a creditor), bit whether they would do that or not depends on how much the check is and other factors.

Is this when the balance is written off?  If the balance is zero before cashing the check, is he obligated to return it or void it out. I am not sure what you mean by this?

3 - Does an auto mechanic have to release a vehicle that has been repaired?  If so, when? Is he obligated to notify the owner when they can pick the vehicle up?  When can he start charging storage fees?

That is a little different.   The auto mechanic that has possession of the vehicle that has a lien on it is not necessarily affected by the discharge.     Secured debts are treated differently in a bankruptcy than unsecured debts.

4 - Is there any legal steps I can take to get the car returned?    I have searched the internet and called the bankruptcy courts to find a place to research my questions to no avail.   I have asked my previous attorney a few questions, but he does not feel it is part of filing my bankruptcy. What a guy!    I think I will nominate him for lawyer of the year.  lol I realize some of the rules vary depending on the state, but I would appreciate any input you can give me. The specific questions you ask do not involve state law issues.    It is the same everywhere for the issues you raise.    Also, since my bankruptcy has been discharged; is there anything I can do about my student loans due to my disability? Yes.   Depending on the factual circumstances that you don't describe here, you may still be able to reopen that case and bring an adversary complaint to have the court declare that in your case the repayment of the student loans would be an undue hardship and would therefore be dischargeable.      

This would be much easier to explain on the telephone.    If you wish, you can call me anytime at this number, including at night or on the weekend.     915  261-3893      I will not charge you just to talk on the phone.

---------- FOLLOW-UP ----------

Thank you for your quick response.  Clarification on the date of filing and the check seems to be a matter of order.       Let us say that bankruptcy was filed on the 1st of the month, but the check was written in the middle of the month and had a memo of:  Full Payment - Estimate & the date of the estimate.  Due to being charged for numerous extra parts(a violation of the state code), CARS was added to the bankruptcy at the end of the month.  Apparently upon receiving his notice, Mr Schnack cashed the check the following month.  So, my logic is if the balance was zeroed, the check was not owed; and in my opinion should have been returned.  Also, it seems logical that when the bankruptcy was filed, I should have had the right to claim the car; thereby preventing any further charges.  Instead Terry has refused to release the car and is charging storage fees($25 /day) although we attempted to pick up the car when the repairs were completed, instead the balance was twice what we agreed to, or over $1,000 more in extra parts.  There is no lien on the vehicle that I know of.  Does universal contract law come into effect in this scenario?   Other than violating state code stipulation of a 10% cap on extra parts not being followed, there were also other devious acts, such as overcharging me for the engine I found, charging me $35 for accepting my debit card and charging me $15 for possible warranty problems in the future.  At this point the original contract for repairs have been paid for and the devious mechanic wants to keep the car and still wants more money.  Any input or suggestions would be beneficial.  Thanks again for you time and input.

ANSWER: Unless the court tells him otherwise, he is not going to release the vehicle until you pay him - and there is an automatic lien against the car subject to his claims.     However, that having been said, there is a way under the circumstances that you describe that you could use the bankruptcy court to settle the dispute and ultimately get the car back, but it is not along the lines of what you are suggesting in your follow up response.    

This would be much easier to explain on the telephone.    I asked you to call me because it is less time consuming to simply talk on the phone without all of this back and forth with incomplete facts and misunderstandings that you have insofar as how the bankruptcy stay and discharge works.   

If you want additional help, call me on the phone.  915  261-3893

---------- FOLLOW-UP ----------

Sorry I do not have a name to address; but thank you for your offer, and I apologize for not calling earlier.     I just can’t see how a mechanic can walk away with a car when the repairs are paid for and any storage fees are due to his devious acts of adding $1,000 in additional parts knowing the original charges were the maximum that I had to invest in the car and living on SSDI.   Since I am certain you are enjoying your weekend, I will call you on Monday.  Thank you again!
Dewain
 
Posts: 34
Joined: Wed Feb 19, 2014 9:34 am

Bankruptcy - After Discharge

Postby Amir » Sun Nov 13, 2016 3:57 am

My bankruptcy has been discharged, but I have a few questions. Unfortunately my attorney has not been very helpful since the bankruptcy was filed. 1 - What is the effective date of a bankruptcy - the date filed, date of creditor's meeting, or the discharge date?  Let us use a utility as an example:  Does the bill stop on the filing date or when the bankruptcy has been discharged?  How do they start a new contract/bill?  

2 - If a creditor is in possession of a check at the time he receives his notice of bankruptcy, can he legally cash the check?  I have read that once a bankruptcy has been filed, no collection efforts are allowed.  Is this when the balance is written off?  If the balance is zero before cashing the check, is he obligated to return it or void it out.  

3 - Does an auto mechanic have to release a vehicle that has been repaired?  If so, when? Is he obligated to notify the owner when they can pick the vehicle up?  When can he start charging storage fees?

4 - Is there any legal steps I can take to get the car returned?     I have searched the internet and called the bankruptcy courts to find a place to research my questions to no avail.   I have asked my previous attorney a few questions, but he does not feel it is part of filing my bankruptcy.  I realize some of the rules vary depending on the state, but I would appreciate any input you can give me.     Also, since my bankruptcy has been discharged; is there anything I can do about my student loans due to my disability? Thank you for your time in assisting others and any advice you provide.

ANSWER: My bankruptcy has been discharged, but I have a few questions. Unfortunately my attorney has not been very helpful since the bankruptcy was filed. 1 - What is the effective date of a bankruptcy - the date filed, date of creditor's meeting, or the discharge date?  Let us use a utility as an example:  Does the bill stop on the filing date or when the bankruptcy has been discharged?  How do they start a new contract/bill?

The "effective" date depends on what you are talking about.   The filing date is the effective date in terms of your getting immediate protection, but the discharge date is the date on which the debt is actually discharged(i.e., rendered uncollectible).   As for utilities, they are dischargeable, but the discharge will only apply to the amount that was due up until the filing date.  What they do is open you a new account as of the date that you filed.  

2 - If a creditor is in possession of a check at the time he receives his notice of bankruptcy, can he legally cash the check?  I have read that once a bankruptcy has been filed, no collection efforts are allowed.  

He can cash it.    He has the check.    That doesn't mean that all financial activity stops.   He already has the check.    There are circumstances in which the bankruptcy trustee can request that the money be returned(as an unlawful preferential payment to a creditor), bit whether they would do that or not depends on how much the check is and other factors.

Is this when the balance is written off?  If the balance is zero before cashing the check, is he obligated to return it or void it out. I am not sure what you mean by this?

3 - Does an auto mechanic have to release a vehicle that has been repaired?  If so, when? Is he obligated to notify the owner when they can pick the vehicle up?  When can he start charging storage fees?

That is a little different.   The auto mechanic that has possession of the vehicle that has a lien on it is not necessarily affected by the discharge.     Secured debts are treated differently in a bankruptcy than unsecured debts.

4 - Is there any legal steps I can take to get the car returned?    I have searched the internet and called the bankruptcy courts to find a place to research my questions to no avail.   I have asked my previous attorney a few questions, but he does not feel it is part of filing my bankruptcy. What a guy!    I think I will nominate him for lawyer of the year.  lol I realize some of the rules vary depending on the state, but I would appreciate any input you can give me. The specific questions you ask do not involve state law issues.    It is the same everywhere for the issues you raise.    Also, since my bankruptcy has been discharged; is there anything I can do about my student loans due to my disability? Yes.   Depending on the factual circumstances that you don't describe here, you may still be able to reopen that case and bring an adversary complaint to have the court declare that in your case the repayment of the student loans would be an undue hardship and would therefore be dischargeable.      

This would be much easier to explain on the telephone.    If you wish, you can call me anytime at this number, including at night or on the weekend.     915  261-3893      I will not charge you just to talk on the phone.

---------- FOLLOW-UP ----------

Thank you for your quick response.  Clarification on the date of filing and the check seems to be a matter of order.       Let us say that bankruptcy was filed on the 1st of the month, but the check was written in the middle of the month and had a memo of:  Full Payment - Estimate & the date of the estimate.  Due to being charged for numerous extra parts(a violation of the state code), CARS was added to the bankruptcy at the end of the month.  Apparently upon receiving his notice, Mr Schnack cashed the check the following month.  So, my logic is if the balance was zeroed, the check was not owed; and in my opinion should have been returned.  Also, it seems logical that when the bankruptcy was filed, I should have had the right to claim the car; thereby preventing any further charges.  Instead Terry has refused to release the car and is charging storage fees($25 /day) although we attempted to pick up the car when the repairs were completed, instead the balance was twice what we agreed to, or over $1,000 more in extra parts.  There is no lien on the vehicle that I know of.  Does universal contract law come into effect in this scenario?   Other than violating state code stipulation of a 10% cap on extra parts not being followed, there were also other devious acts, such as overcharging me for the engine I found, charging me $35 for accepting my debit card and charging me $15 for possible warranty problems in the future.  At this point the original contract for repairs have been paid for and the devious mechanic wants to keep the car and still wants more money.  Any input or suggestions would be beneficial.  Thanks again for you time and input.

ANSWER: Unless the court tells him otherwise, he is not going to release the vehicle until you pay him - and there is an automatic lien against the car subject to his claims.     However, that having been said, there is a way under the circumstances that you describe that you could use the bankruptcy court to settle the dispute and ultimately get the car back, but it is not along the lines of what you are suggesting in your follow up response.    

This would be much easier to explain on the telephone.    I asked you to call me because it is less time consuming to simply talk on the phone without all of this back and forth with incomplete facts and misunderstandings that you have insofar as how the bankruptcy stay and discharge works.   

If you want additional help, call me on the phone.  915  261-3893

---------- FOLLOW-UP ----------

Sorry I do not have a name to address; but thank you for your offer, and I apologize for not calling earlier.     I just can’t see how a mechanic can walk away with a car when the repairs are paid for and any storage fees are due to his devious acts of adding $1,000 in additional parts knowing the original charges were the maximum that I had to invest in the car and living on SSDI.   Since I am certain you are enjoying your weekend, I will call you on Monday.  Thank you again!
Amir
 
Posts: 50
Joined: Thu Feb 06, 2014 9:22 pm

Bankruptcy - After Discharge

Postby Claegtun » Mon Nov 14, 2016 1:00 am

It's ok.  You can call me this weekend if you want - and my name is Jack Hall.

You state, "I just can’t see how a mechanic can walk away with a car when the repairs are paid for and any storage fees are due to his devious acts of adding $1,000 in additional parts knowing the original charges were the maximum that I had to invest in the car and living on SSDI."

You are right, but that's not the problem.  The problem is that they have the car and you don't and what do you do about it.   And what can you do so that they don't claim you have any additional liability and sue you.

I had a very similar case about a year ago and we were able to handle to fairly quickly and inexpensively.     When you call me we can discuss this further.      915  261-3893  
Claegtun
 
Posts: 58
Joined: Fri Jan 10, 2014 8:10 pm


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