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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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My bankruptcy was discharged in March 10, the judge denied

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My bankruptcy was discharged in March '10, the judge denied my auto loan reaffirmation, I continued to make payments and am credit report shows my car loan as part of the bankruptcy.............if I stop paying the loan and they take the car back will I be responsible for the remaining loan as it seems to be included in my bankruptcy?

Hi JACustomer,

Since the car loan was not re-affirmed in the Bankruptcy, your liability for paying the loan was discharged. In other words, if you stop paying the loan, you will not be responsible for the balance of the car loan - whether or not the lender re-possesses the car.

Customer: replied 6 years ago.
The reason the judge did not reaffirm was that my ex-husband had cosigned the loan and he has not filed bankruptcy. Her thought process was that if I failed to pay the loan, they could go after him for the unpaid balance. I've been making the regular payments on time each month since I filed the bankruptcy but have just recently found out after my bankruptcy had been discharged that none of my payments had been reported to the credit bureau. Nieve of me but I thought that my payments would show I was attempting to regain my credit standing. I just want to reassure myself that if I let the car go back that it won't have any affect on my bankruptcy discharge or my trying to establish new credit. Many people have asked me why I'm keeping a car that is upside down and of no equity, not showing positive on my credit report and is actually listed on my credit report as included in the bankruptcy. Is your reply still the same after this further information?

The effect of not re-affirming is not affected by the reason the judge would not approve a re-affirmation. In other words, it is still the case that you could not be held liable for the balance of the car loan if you stop paying.

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