I filed for Chapter 7 bankruptcy and was discharged last February. I let them take my car, and after it was repossessed, my insurance company called about damage to it. I honestly don’t remember any accident or damage. Now they’re saying I might be responsible for the whole claim amount. What happens if I don’t pay? Can they garnish my wages or take my current car, which is worth $5,500 and paid off?
If the car was included in your bankruptcy, you shouldn’t be on the hook for anything related to it pre-discharge. Have you checked that?
Owen said:
If the car was included in your bankruptcy, you shouldn’t be on the hook for anything related to it pre-discharge. Have you checked that?
Yeah, the car was part of the bankruptcy. They’re claiming the damage happened after the discharge, though. Can they still bill me?
Owen said:
If the car was included in your bankruptcy, you shouldn’t be on the hook for anything related to it pre-discharge. Have you checked that?
If the damage happened after the discharge, they might try, but they’d need proof it was your fault. Did they provide any evidence?
Wait, if it’s discharged, doesn’t that mean they can’t touch your wages or current assets at all? 
Frankie said:
Wait, if it’s discharged, doesn’t that mean they can’t touch your wages or current assets at all?
Exactly. Garnishment isn’t allowed for discharged debts. They’d need to take legal action for any new claims, though.
Frankie said:
Wait, if it’s discharged, doesn’t that mean they can’t touch your wages or current assets at all?
Thanks, that’s good to know. So they’d need a court judgment first, right?
Frankie said:
Wait, if it’s discharged, doesn’t that mean they can’t touch your wages or current assets at all?
Yep, they’d need to prove their case in court before they could go after anything. Sounds like they’re bluffing.
FYI, if they’re saying the damage happened the day they repossessed it, they’d better have proof. Did they give a specific report or photos?
Chen said:
FYI, if they’re saying the damage happened the day they repossessed it, they’d better have proof. Did they give a specific report or photos?
Nope, no proof, just their word. I guess I should ask for documentation?
Chen said:
FYI, if they’re saying the damage happened the day they repossessed it, they’d better have proof. Did they give a specific report or photos?
Totally ask for proof. If they can’t show anything, you’re in a stronger position.
Quick Q: If they bill you for damages, do you still have to pay the deductible?
Keegan said:
Quick Q: If they bill you for damages, do you still have to pay the deductible?
Good question. My deductible is $1,000, but IDK if that applies since it’s post-bankruptcy.
Keegan said:
Quick Q: If they bill you for damages, do you still have to pay the deductible?
I think you only pay the deductible if they win a claim against you. For now, it’s on them to prove you’re liable.