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Andrea Ray
Andrea Ray, Attorney
Category: Bankruptcy Law
Satisfied Customers: 82
Experience:  Over 5 years experience in consumer and commercial bankruptcy law, Chapters 7 13 and 11
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I received my discharge from Chapter 7 yesterday. I did not

Customer Question

I received my discharge from Chapter 7 yesterday. I did not sign a reaffirmation agreement on my car, but spoke with the lender and they said they would not repo as long as I was making my payments ontime. However, the payments are high and I am thinking about downsizing and getting a used vehicle for lower payments. Since I didn't sign a reaffirmation agreement and my car was included in the bankruptcy, can I just turn it in without further penalty? Several special finance mangers have told me I could, but I wanted to hear it from a lawyer. I'd hate to give up my car and find I can't get new financing on something used.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Andrea Ray replied 7 years ago.
If you are asking about the effect on your credit, they are correct that it will just say "included in bankruptcy." If you turn the vehicle in you will owe nothing further on it since the debt has been discharged. However please understand that the creditor is unlikely to give you a loan again for many years because you have caused them a loss. So if that bothers you dont' do it. I don' t know why (because there are many other fish in the sea) but that seems to bother some people about this situation.
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Customer: replied 7 years ago.
Thank you Andrea. I just wanted to make sure I had all the info before I made my decision to turn the car in. Thanks again!!

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