Hello I filed for chapter 7 and had my 341 meeting a few weeks ago, this was a no-asset case. I have an auto loan that I have current and didn't want to include it as a debt to be discharged. I was informed that It would be best to get rid of the car in the chapter 7 because I owe way more than its worth. Is it possible to surrender the car to the lender and and have this debt discharged as well? The trustee included the amount owed in my bankruptcy although I was going to keep it at first.
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As long as you didn't sign a reaffirmation agrement, the debt is discharged and you have no responsibility for any defeciency balance. -
Since your 341 was only weeks ago and you are not yet discharged, even IF you signed a reaffirmation agreement you can still change your mind and rescind your reaffirmation. However this can only happen BEFORE your discharge. Discuss this with your lawyer ASAP to be sure.8-07-09-filed Chapter 7
11-18-09-DISCHARGED!!
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I haven't signed anything I had no intention of signing a reaffirmation. I spoke with my attorney he stated that I could just surrender the car, I did so this morning. I called the lender and told them they could come pick the car up, they came within a few hours. I had the rep fax me a letter that I am no longer responsible for the remaining balance and she actually did it. Its a local bank and I applaud them for how they handled this...Comment
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You are required to list all debts in a chapter 7 even if you don't want them discharged you cannot exclude any debt from a BK filing. You have the option to reaffirm that debt but you cannot simply not include it in BK. Make sure the auto loan is listed in your schedules and yes you will not be responsible for paying any more money.Comment
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