Auto Loan Company would not reaffirm...I don't want the car!

I had a filed for bankruptcy in June of 98. At the time I had two cars and wished to keep both. Nissan reaffirmed with me, while GMAC would not. GMAC said that they do not reaffirm contracts, and as long as I was current with payments I could keep the car. I am current with payments, however, the car hasn't run in 6 months. I just keep dumping money into it. Can I call GMAC and ask them where to drop off the non affirmed vehiocle. What is my legal financial responsibility.

Was there any paperwork you had to do to retain the GMAC debt during the process of the bankruptcy?

Is it listed anywhere on your bankruptcy as a debt and then an affirmed debt?

Usually, companies will have you sign something during BK to "affirm" in order to retain. You say you didn't?

I think what you are suggesting is a "voluntary repossession", where you simply return the car...right?

Tyically this is how it will work. Let's just say that you owe $10,000 (to keep the figures simple). You turn in the car.

The bank will then auction the car off. Seeing how it does not run it might bring $1500. The bank will then sue you for the $8,500 difference, plus all of their collection costs, which could run anywhere from $500 to $2,000.

Bottom line, if you turn the car in you will probably owe more than you do now....and not have the car, and have yet another delinquency on your credit.


I am not positive of this, but there is probably some liability on your part by virtue of the fact that you continued to make payments on the car after the bankruptcy, indicating your intentions to fulfill the contract, regardless of the bankrupty status.