Car loan before chapter 7 and reaffirmation

[Batiatus]

So in 2005 I bought a Car with my Wife. Kept the payment. In 2008 We got divorced she kept the car. I was the primary Borrower and she was the co signer. In 2010 I filed for CH7. On my CH7 I said I wanted to keep the car since my x wife needs a car. Capital one send me a reaffirmation letter which I never signed. I still have the letter with me. As of today. It was discharged on May of 2010

My x wife then filed for ch 7 in 2010 and said she wanted to keep the car on her petition, but Capital one never sent her any letter. Her BK got discharged in 2011.

She informed me that capital one stoped sending her statements after my BK and Santander sent her a letter stating they will start collecting payments from her by automatic debit

She lost her job in 2006 and now works at home depot making 10,000 a year. She can no longer pay for the car and wondering if she can just surrender the car to the lender without making any payments

Thanks

[keepmine]

If she never signed a reaffirmation agreement, she can stop paying and have no liability for a deficiency balance.

[Batiatus]

If she never signed a reaffirmation agreement, she can stop paying and have no liability for a deficiency balance.

We bought the car for $26,000 and I put down $10,000. We financed 16,000. The current pay off now is at $6,000. How do we return the car to the lender? just stop making payments and have them repo? Will I and or my x wife stil have to pay for the balance? I was looking at the letter and it said I had to return the reaffirmation within in 60 days which I never did and also I never went to a reaffirmation hearing

[LadyInTheRed]

If your x stops paying, they will eventually repo the car. If neither of you reaffirmed the loan (if you never signed a reaffirmation agreement that was filed with the court, you did not reafirm) and your BKs were both discharged, they can't come after you for the deficiency (different between what you owe and the value of the car).

[Batiatus]

Thanks.. Should I call them and say I want to surrender the car?

[bcohen]

Thanks.. Should I call them and say I want to surrender the car?

Why bother? Let your ex-wife drive the car payment-free for a few months before they eventually repo it.

[Batiatus]

OK so My ex decided to stop paying for the car. Current balance now is $6K. IF she stops paying will it show on our credit report as delinquent?

[LadyInTheRed]

OK so My ex decided to stop paying for the car. Current balance now is $6K. IF she stops paying will it show on our credit report as delinquent?

It shouldn't, but it might. You should both watch your credit reports and dispute any new reporting by the lender.

[ksgirl38]

Thanks.. Should I call them and say I want to surrender the car?

Probably. It's probably better to surrender it rather than wake up one morning wondering how you are going to get to work.

[anderson238]

you need to check your credit report, if the car is showing 0 balance IBB, discharged , then they cannot report now.
if if still shows balance and payments posted, then you might want to double check with your Attty ( if you had one) if you didnt, hopefully you specifcally recall and she as well recalls not signing any reaffirmation agreement.
good luck!