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VanDLaw, Attorney
Category: Bankruptcy Law
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Experience:  Chapter 7 & 13
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My uncle financed a car for me about a year a half ago thru

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My uncle financed a car for me about a year a half ago thru Honda Corp. The car is in his name but I make all the payments. He's filing for chapter 7. I was told the car would need to be surrendered. I want to keep the car. What are my options. The balance is $14,500.00.



The car will have to be included in the bankruptcy because he is the legal owner of the car. If the payments have been made timely and are current, he can choose to "reaffirm" the car. This is where you promise to keep making payments and the car is not surrendered to the lender. Your Uncle would have to choose this option, and it would have to be approved by the Trustee. It may be wise for him to explain the situation to the Trustee at his 341 meeting.


Honda corp. is not allowed to deal with the car during bankruptcy there is an automatic stay in place once someone files bankruptcy. So until the stay is lifted they cannot work with you on buying the car. Further you should only offer them the NADA value not the balance of the note. They are going to get much less at auction, and they will not be able to go after your Uncle for the difference, so they may be happy to sell you the car. However, you will have to wait until the bankruptcy is discharged.

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