I filed Chptr 7 March 2005 and it was over in September of that year. I continued to pay the CU on my wife's car without reafirming it. They just kept accepting the payuments and seding the statements. I've been trying to sell the darned thing for what we owe on it and am having no luck. What happens if I just give it back to them? I've worked hard and my credit scores have been steadily climbing and are in the upper 600's already. Since the car was dischargedand not reaffirmed will it have any effect?
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No effects. You can let the car go.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation. -
Let's back-up a bit, do you know if you live in a community property State or not? Moreover, was your BK a joint BK or just you, and whose name is on the title of the car?Comment
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WA so it is a community proprty state. We both went through bk and both of us are on the car loan.Comment
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Ok, since your BK predates the new law, you should be OK. This doesn't mean it won't be a hassle to get rid of the car, just because you are no longer liable for a deficiency balance, doesn't mean they won't play all kind of games with you. But yes, you should be able to simply stop paying and do a voluntary repo (and the benefit is, you will probably be able to drive it around a for a few months after you stop paying since the finance company will be loathe to come get the car).
Do you happen to know how the car is currently being reported on your credit report. If it's being reported as "paid as agreed" and you let it go, (meaning it will now be reported as "discharged in BK"), your credit score will likely go down. If its already being reported as discharged in BK, then it shouldn't be a big deal. However, if you simply stop paying, that negative payment history, regardless if it is post bankruptcy, can be reported on your credit report and will drag down your score to some degree. So, letting the car will likely have "some" negative effect.Comment
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What if I simply called them and told the I was leaving it at the closest branch? No late payments, simply a give back.Comment
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You could do that. This is exactly what I did when I gave my vehicle back (although it was only 3 months after discharge). It still took the lender 4 months to eventually pick it up though.Bankruptcy History:
Chapter 7 filed - 10/12/2005 - Asset
Discharged - 02/16/2006
Case Closed - 11/08/2007
A banker is a fellow who lends you his umbrella when the sun is shining and wants it back the minute it begins to rain ~ Mark Twain
All suggestions are based on personal experience and research and SHOULD NOT be construed as legal advice as I am NOT an attorney. Always consult with competent counsel in your area with regards to your particular situation.Comment
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How can they report negative payment history after the bankruptcy filing? Wouldn't that be considered an attempt to collect a discharged debt?Originally posted by HHM View PostComment
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