Chapter 7 Discharge & Automobile

[matchitisiw]

My lawyer informed me yesterday that the Court Trustee had no additional quesions regarding my case and that I need to be obtaining my discharge sometime correct following six/03/08. I produced my payments on my Volkswagen Jetta all through the approach and elected to keep it. If I decided to stroll away and take it back to the lender could I do so? If I select to continue to make payments and spend it off am I permitted to do that with no reaffirming my automobile loan? If I do reaffirm can I negoiate with the lender for fair market place location worth or for the loan quantity only? The loan is worth a lot more than the car.

[sugyn]

You must actually be talking with your lawyer about this.Read up:http://bankruptcy.lawyers.com/Chapter-7-Bankruptcy-Basics.htmlSpecifically:"Beneath the new law, you have to reaffirm your automobile loan inside 45 days right after the "341 meeting." You no longer have the option of continuing your automobile payments without having reaffirming the loan. As quickly as the loan is reaffirmed, if you default on your payments and the vehicle is repossessed, you are liable for the repossession deficiency. You also have the decision to redeem the automobile inside 45 days of the "341 meeting." This implies that you have to spend the whole balance due within that time. Just simply because most debtors do not have that type of earnings, this option is hardly ever employed. If you figure out to reaffirm a debt, you are vital beneath the Bankruptcy Code to file an agreement with the court. The agreement should disclose that you had been advised of the quantity of the debt you are reaffirming and how it was calculated and that you are aware that the debt will not be discharged. You should indicate your revenue and expenditures so that the court can see that there is adequate income to spend the reaffirmed debt. Unless you are represented by an lawyer, the court have to approve the agreement. A hearing will be held if the court disapproves. If an lawyer represents you, he or she need to certify in writing that they advised you of the legal consequences of the agreement, that you have been entirely informed and entered into the agreement voluntarily, and that the reaffirmation will not create an undue hardship on you and your loved ones."

[alcander84]

Hi Cathy,I just got off the phone with my lawyer to ask her the extremely identical query. She told me that I could continue to make the payments due to the fact I would like to keep the automobile I just don't want to reaffirm. She just reminded me that the credit union could take the car at any time right after the discharge posts. Concerning making payments on the vehicle I asked her if they show up on my credit report as payments getting produced and she mentioned yes. I was beneath the impression that a bankruptcy note would be on my credit report for the auto and no payments would be noted. If I reaffirm the automobile I am assuming that my payments would be reflected for confident just not constructive about if I hold generating payments and don't reaffirm.Brian

[Corydon]

You are not required to reaffirm.
You can surrender the car and have no liability. If you reaffirm, the liability for the reaffirmed debt is just as if there was no bankruptcy.Cathy Moran