A few Years After Filing

What is the name of your state? Louisiana

I filed Chapter 7 and received discharge in 1999. I made arrangements with the finance company involved to voluntarily return my mobile home. I was able to keep my 1995 Thunderbird as I use it for work in the insurance industry.

Approximately two years later, I contacted the finance company that had originally held the lien on my car. I was recovering financially and wanted to make arrangements to pay the remaining balance on my car. When I called to get the payoff balance on my car, I was told by a gentleman there that it had been charged off and since I had included the car in the bankruptcy, there was no need to pay it. This gentleman was not on their legal staff, and I think he was telling me this "confidentially" and perhaps his employers would not have appreciated him telling me this.

I am still driving that Thunderbird and am considering trying to purchase another vehicle due the age of the car. However, I have no idea how to get the title back on my car of if the finance company will give it to me.

Any advice on this? Thank you.

[Ladynred]

Did you reaffirm the loan on the T-bird ?
If not, then the debt was discharged, but in order for you to keep it, you kept making the payments. I don't believe the guy you spoke to at the finance company was correct at all. If you stop paying, they would still have the right to repo the vehicle and the still hold the title to it until is paid for.

Most finance companies have separate depts for bankruptcies. You might try calling back and asking for someone who handles bankruptcies and see if you get any better answers that way.

Thank you LadynRed. I did not reaffirm on the auto. It is my understanding it was discharged in the bankruptcy. Is this possible and would it make a difference?

[Ladynred]

Yes, its possible. That's the way it works, especially with vehicles. You didn't reaffirm, so the debt was discharged, so you could , literally, walk away from it now and they could never do anything to you for the balance still due. They would still have the right to repo the car if you stopped paying, but since you didn't, you've been able to keep the car. They may, indeed, have written the loan off as a bad debt, but that doesn't mean they can't keep taking your payments - they have.

Try asking for the bankruptcy dept. They hold the title to your car and if you pay off the balance of the loan, the title should be released to you.