Newby here - newby questions

[Bitterkind]

Hello all,
In short, my situation is this, I am presently leaning towards Ch. 7 and need some verifications that I am sure the lawyer didn't want me to be too clear on (during first consultation).
{Correct me if I'm wrong}
I understand that Under Ch. 7 my old debts (such as bills-failed-to-pay, court judgements, etc. will be "wiped clean", so to speak).
I do realize that not all monies owed will apply to Ch. 7 (such as education, any type of criminal fines, et.)
I am way behind on my second car payment - the other one got repossessed.

I thought that I was cognitive of the "fact" (?) that I would have to turn in my car pre-Ch. 7 (of course, after arrangements were made for a replacement), but I am now wondering just why.

I told the lawyer that I had received a letter from the auto finance company stating that if said amount of money wasn't received by said date - the account would be turned over to a collection agency.

Wouldn't this be a good thing in my favor - that is myself being allowed to keep my car and still have the payment balance cleared??

I need to know also, if I did turn-in said car and acquire another how would that work (?) - I mean, I was under the impression that I can no longer incrue debt (as in credit) for a period of time (after Ch. 7)

The only reason that I can see is that the "new" auto would be a sort of "fresh start" on financing a car and it would, of course, happen before Ch. 7 was initiated. Is this correct??

Thanks in advance for your answers.

[Bitterkind]

Also, If I can keep my car and not have to pay the remaining balance - would this allow for me to continue to register the car, and what about the cars' title??

[Bitterkind]

Anyone????

[xapooh]

I am no expert to this but if you owe any amount on that vehicle then they have the right to repo it. You must reaffirm that debt which means you are current and will continue to be current on those payments. However, if you still owe on that vehicle, the trustee most likely will not allow you to file a Ch.7 and if you push it they can and will dismiss your case. If you would like to keep your vehicle then your best interest is to file a Ch13 in which you make settlement arrangements with your debtors and pay off your balances month to month.

[Cabinboy]

What is your balance owed on the auto, and what do you owe on it? If you owe more
or close to the value of the auto, I would not reaffirm the auto loan but put it in with your other debt to be discharged, but keep making the monthly payments to keep it current. This is because if there is no equity in it, it would cost the lender more to repo the auto and they would probably take a loss. However, if you have a bank account with them also, they may request that you reaffirm the debt or threaten to
close your account. I still wouldn't reaffirm it. I would open a different checking account before you file because there is a good chance they will close the account anyway. You shouldn't have too much problems opening another account as they use chexsystems which verifies if you have had checks returned with overdraft, not your credit. If you've had overdraft protection in the past that would have protected any overdrafts from being reported to these type of agencies. I hope this helps. Good Luck.