QUESTION
If I intend to trade these vehicles in, is it in my best interest to try and become current on my loans on both vehicles?
Asked on Jun 13th, 2013 on Bankruptcy - Colorado
More details to this question:
I have filed Chapter 7 Bankruptcy and my hearing has been conducted. I have recently submitted reaffirmations for 2 vehicles with negative equity and I'm starting to think I shouldn't have. I only did so to protect a co-signer and myself from paying he difference, otherwise I would have given the vehicles back to the lenders. During this timeframe, I have also fallen behind on payments of both vehicles due to loss of income and understand these are being reported negatively on my co-signer's credit report. By discharge, I need to be current on these vehicles as far as payments are concerned but I am very uncertain whether I can come up with enough money to do so. I have also spoken to a local car dealership who deals with bankruptcy and they believe that I can trade the vehicles in immediately after discharge, understanding that the conditions are less than ideal for myself, however a co-signer would not be needed. Am I wasting money since I am going to trade these vehicles in anyway, immediately after discharge?
5 ANSWERS
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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If you are sure you can trade the vehicles in, you should be okay. If they decide not to let you trade them in, you will be stuck with the vehicles and the reaffirmation agreement.
Answered on Jun 15th, 2013 at 4:17 AM
You can choose to rescind those reaffirmation agreements. You will need to send written notification to the lenders that you are rescinding the reaffirmation agreements. Then you can let them have the vehicles and you will walk away from all the debt attached to them.
Answered on Jun 15th, 2013 at 4:17 AM
Reaffirming is never a good idea and especially so in the circumstances you describe. I hope the judge denies the reaffirmations as not being in your best interest.
Answered on Jun 14th, 2013 at 12:50 PM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
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Sisson & Kachinsky Law Offices
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Probably better to surrender them unless u have a lot of equity in them. Consult your atty
Answered on Jun 14th, 2013 at 12:03 PM
Deborah F. Bowinski
From the sound of it, you should consider rescinding your reaffirmation agreements if you are still within the allowable time frames. Trading in the vehicles will not relieve you of having to pay the full loan balances.
Answered on Jun 14th, 2013 at 10:10 AM