QUESTION
How would voluntary surrender of reaffirmed leased vehicle after Chapter 7 bankruptcy affect our credit?
Asked on Dec 26th, 2014 on Bankruptcy - Washington
More details to this question:
Hi, within the past year my spouse and I filed for chapter 7 bankruptcy, we reaffirmed our lease for our vehicle, and have been making necessary payments, we have one more year to go, but would like to get out of our lease. The loan company told us that we could do a voluntary surrender/repossession, what would this do to our already dinged up credit (from filing for bankruptcy). Any help is much appreciated!
5 ANSWERS
Unfortunately, it would adversely be reflected on your credit report. You have to pick your poison.
Answered on Dec 29th, 2014 at 4:16 PM
No matter what you hear from the lender, a voluntary surrender is the same as a repo. And because you signed a reaffirmation, the lender can sue you for the balance owed under the lease unless you have something from them in writing that they won?t sue you. All of this is very bad for your credit.
Answered on Dec 29th, 2014 at 4:16 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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It will not help your credit. More importantly, since you reaffirmed the debt you are responsible for the lease payments. They can and will sue you for the deficiency.
Answered on Dec 29th, 2014 at 4:15 PM
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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The cardinal sin of credit reports is bad performance after bankruptcy. It is not as much an affect on the score but on credit managers' decisions.
Answered on Dec 29th, 2014 at 4:15 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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Check with your bankruptcy attorney. If it is not too late, you might be able to cancel the reaffirmation agreement.
Answered on Dec 29th, 2014 at 4:15 PM