QUESTION
After my bankruptcy discharge, what will happen if I stop payments on my car or miss a couple of payments?
Asked on Apr 02nd, 2013 on Bankruptcy - Delaware
More details to this question:
Can my car get taken away or repossessed after the discharge?
19 ANSWERS
Yes your car may be repossesesed after a bankruptcy has been discharged if you don't make your payment.
Answered on Apr 16th, 2013 at 12:53 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Yes, your car can get repoed if you are behind on the payments after discharge.
Answered on Apr 03rd, 2013 at 11:52 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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If you do not pay the lender has a right to repossess the vehicle. If you signed a reaffirmation agreement the lender can repossess the vehicle and then sue you.
Answered on Apr 03rd, 2013 at 4:03 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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In order to keep your car you must reaffirm the debt with the lender. This means, at the very least, that you must stay current. Some lenders do not require a formal reaffirmation agreement. You should consult an attorney as to whether it is to you advantage to refuse to sign an agreement.
Answered on Apr 03rd, 2013 at 4:02 AM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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Absolutely. The car finance company is secured and can pick up your car for non-payment. (If you did not reaffirm, the company actually can pick up the car even if you are making payments, though you would not owe a deficiency)
Answered on Apr 03rd, 2013 at 4:02 AM
After a Chapter 7 bankruptcy, if you want to keep your car, you have to continue making payments. If you did not sign and file a reaffirmation agreement, then you can let the car go to the bank and not be responsible for any fees.
Answered on Apr 03rd, 2013 at 4:01 AM
2 Awards
Yes, a secured creditor always has the right to repossess the collateral.
Answered on Apr 03rd, 2013 at 4:00 AM
Debt Settlement Attorney serving San Diego, CA
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Law Offices of Kathryn Tokarska
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Yes, if after receiving a bankruptcy chapter 7 discharge you fail to make regular timely payments on secured debt obligations, the collateral (here a car) can be repossessed. Under some circumstances, the vehicle can be taken even while the bankruptcy chapter 7 case is still open. Whether the creditor can sue you to collect for any deficiency that may come about as a result of this will depend on whether a reaffirmation agreement was executed and filed with the court.
Answered on Apr 03rd, 2013 at 4:00 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Yes, your car can be repossessed if you miss payments. If you did not reaffirm the debt, that will be the end of it. If you did reaffirm the debt, you could be liable for any deficiency.
Answered on Apr 03rd, 2013 at 3:59 AM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
If you do not reaffirm the car, they can repossess.
Answered on Apr 03rd, 2013 at 3:59 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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Yes as to both questions.
Answered on Apr 03rd, 2013 at 3:52 AM
Bankruptcy Attorney serving Los Angeles, CA
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Law Offices of Raymond H. Aver, A Professional Corporation
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The lender may lawfully seek to repossess the vehicle. If you did not reaffirm the automobile loan, the lender may lawfully seek to repossess the vehicle even if you are current on the payments.
Answered on Apr 03rd, 2013 at 3:52 AM
Yes, your vehicle can be repossessed after a bankruptcy filing if you stopped making payments on the vehicle loan. If you did not sign a reaffirmation, the car is repossessed and sold, however the lender will not be able to collect any deficiency amount due to the discharge. If a reaffirmation agreement was signed, the lender will be able to collect any deficiency amount after the discharge. Since every case is different, I would recommend that you consult with a bankruptcy attorney that will be able to review your situation, including the documents filed in the prior bankruptcy, and address any potential issues.
Answered on Apr 03rd, 2013 at 3:48 AM
Yes, your car can be repossessed if you default on your loan payments after discharge.
Answered on Apr 03rd, 2013 at 3:33 AM
Deborah F. Bowinski
If you fail to make loan payments on your car then the lender can and will repossess the vehicle. While the debt is discharged in bankruptcy, the lien against the vehicle remains. This means that if you don't pay you don't get to keep the car.
Answered on Apr 02nd, 2013 at 9:41 PM
Once you receive your discharge, the automatic stay you enjoyed while your bankruptcy was active ends. The creditor financing your vehicle no longer needs court permission to repossess your car in the middle of the night or while you are at work and they are highly motivated to do this because if you miss even on payment, they feel you have no desire to pay for the vehicle and are simply taking them for a ride.
Answered on Apr 02nd, 2013 at 9:40 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Yes, it is probably secured by the underlying debt and therefore subject to repossession as soon as you stop paying.
Answered on Apr 02nd, 2013 at 9:40 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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Yes. You discharged your liability for the debt but bankruptcy did not negate the lien the lender has on its collateral, in this case the car.
Answered on Apr 02nd, 2013 at 9:39 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Yes and if you re-affirmed the debt, they can go after you for the unpaid balance. If you did not reaffirm and the Court did not sign an Order to allow you to reaffirm, and if you stop paying after discharge, they can repossess the car, and should, but they cannot pursue you for the balance.
Answered on Apr 02nd, 2013 at 9:38 PM