What happens to a car/loan when bankruptcy is filed?
scooterdiamond asked:
I am about to file, and have a car/loan that is still owed 30k. I don’t want to re-affirm that loan, and want to the car to be re-poed. Is the 30k cleared during the BK??
Well I want to get rid of the car, thats fine… But if I get rid of the car, am i responsible for the 30k still or does that go with the car?
I won’t need the car for anything, I have another lined up, much cheaper, and with a co signer. I just want to not be responcible for 30 k, or the kbb says its worth 24k… the 6k.
This entry was posted
on Thursday, July 16th, 2009 at 1:20 pm and is filed under Car Loans.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
I am about to file, and have a car/loan that is still owed 30k. I don’t want to re-affirm that loan, and want to the car to be re-poed. Is the 30k cleared during the BK??
Well I want to get rid of the car, thats fine… But if I get rid of the car, am i responsible for the 30k still or does that go with the car?
I won’t need the car for anything, I have another lined up, much cheaper, and with a co signer. I just want to not be responcible for 30 k, or the kbb says its worth 24k… the 6k.
July 17th, 2009 at 12:13 am
Nope, you either have to pay off the remaining amount of the loan within a certain amount of time or you have to give the car back. Sorry, bankruptcy is tough.
July 18th, 2009 at 9:07 pm
If you are filing a chapter 7 I think you have to give the car back. If you file a chapter 13 (where you pay back your creditors) the balance of the car is included. We are almost done with ours. About 4 mos. away. We kept the car and paid everyone off. What a nightmare. The payments are huge!!!!!
July 20th, 2009 at 11:45 am
I believe you are supposed to make a list of all your debts and who is owed what.
Even if the car is re-possessed that does not mean that the debt is paid off as cars devalue the minute you buy one. You likely as not owe 30K on an item worth only 15K.
If you need a car for getting to work then maybe the Court will allow you to keep it, which is a better option since once you have gone bankrupt you will find it very difficult to buy another vehicle.
July 23rd, 2009 at 7:11 pm
Yes the debt you owe is “cleared” in the bankruptcy provided that you do not sign a reaffirmation agreement.. If you surrender the vehicle in the bankruptcy, any debt that you owe is discharged at the end of the bankruptcy. Discharged mean that you are no longer legally responsible for the debt nor can creditors attempt to collect it. Hope this helped
July 26th, 2009 at 12:39 pm
If its listed, they may take it from you..the car!! Depends on what its worth. Mine was paid off and worth nothing and they didn’t take it.