Please Repo My Car

[bk72004]

What is the name of your state?What is the name of your state? CA

First of all this is a great resource for information. Thanks in advance for helping me with my questions.

I was discharged from BK7 3/2004. My automobile loan was properly listed on my bankruptcy and I've always been current on the payments and no reaffirmation agreement was necessary.

I've considered calling the bank and having the car repo'd. It's a great car, but the payoff is almost 17,000 and the blue book value is 8,000. I would rather buy a newer car and pay a high interest rate rather than payoff a loan that is 9,000 dollars upside down.

Can I safely have the vehicle repo'd and not be liable for the loan? I've called a couple of attorneys and they say that since you've made regular payments since your BK it's like a reaffirmation w/out signing any papers. I'm trying to get a straight answer so I've come to this board for answers.

If I do have the vehicle repo'd am I responsible for the repossession costs?

The last thing I want is to have the car repo'd and actually be responsible for the upside down amount. Can I walk away? Again, thanks for any advice.

 

[olgethorpe]

Maybe..

Hopefully, Ladynred will pop in here and confirm this but I think you're misunderstanding what the lawyers are telling you (unless there's something peculiar about CA). If the car loan was listed on your BK and you did not reaffirm it with the appropriate papers...then the debt was discharged by the BK. If you continue to make the payments, the bank will probably let you continue to drive the car...sorta like reaffirming, but the debt is still discharged. In other words, you can call the bank, tell them to come get it, and not owe anything further on that debt.

 

[bk72004]

Cool. So far so good.

On a side note... I might be overly paranoid about this, but here's something that's been rolling around in my head. Isn't it a little for a lack of a better word fraudulent if I've listed this car as a necessary expense and then have it repo'd 6 months later? Can they [the bank] come after me and say 'hey, you listed this as a necessary expense and now it's not 'necessary? 'Sounds like this girl is abusing the system'.

Thanks again and keep the opinions coming.

 

[jetskiscott2]

I'm in the same situation as you BK72004. Looking forward to what the experts here have to say

 

[olgethorpe]

Don't think so...

No...its my understanding that the BK papers are a "snapshot" of your finances at the time you file. Changes that occur 6 months after discharge are generally not a problem. (There are some exceptions to this...but they're related more to "found" property). You still need transportation...chances are you new car payment will be about the same as the car you're giving up.

You might want to check with your BK attorney...

 

[Ladynred]

If there was no reaffirmation agreement signed, then as already stated the debt was discharged and you have NO liability for it whatsoever. You can safely give them back the vehicle and they can NOT come after you for a dime of it. That's why its recommended that you NOT sign a reaff if you don't have to and if state laws say you have to reaff or redeem, redemption is preferable.

 

[bk72004]

One followup question. Is a debtor responsible for respossession costs?

 

[Ladynred]

Not in this case, no.

 

[bk72004]

Thanks