Repo after bankruptcy

I live in Portland, Oregon

Our BK was discharged in Aug of 2001, We did not re-affirm on our auto loan, but we continued to make payments. Recently we found that we owed about $6,000 more than the vehicle is worth and on our credit report it shows that this loan was included in the BK.

We have been approved for an auto loan without trading in this vehicle. Would we still owe the finance company the $6,000 difference if we let this vehicle become repo'ed?

[Ladynred]

If they repo the car, they will sell it at auction. If it doesn't sell for what is owed, they will then come after you for the difference. So, if they get $3000 for it, you'll still be liable for $3000.

Not an attorney, but I think if you didn't reaffirm and it was included in the bankruptcy then any deficiency should also be included in the bankruptcy and dischargeable.

[Ladynred]

The bankruptcy was discharged 9 months ago, so anything that is incurred now isn't going to be added to the bankruptcy.

[bigun]

I agree with Josh. If you included the note in the bk, tell 'em to come and get it. Never reaffirm anything that has a negative equity.

[Ladynred]

Sorry.. I re-read the post. If you didn't reaffirm the car and included it in the bankruptcy, why did you keep making payments ?

We did our bcy ourselves and although we educated ourselves before we decided to go through with the process, we somehow got the notion that if we kept paying on the vehicle, it would look better on our credit report in the long run.

Of course, now we know our mistake. Hopefully, it is true that the smartest thing we did (if anything about it was smart) was to not reaffirm, and as long as we don't owe the difference when they come to get the car, then we are in a better position than we thought. We are already approved for a new auto loan, but trading in the vehicle with neg equity would make that loan impossible.

Is there anywhere I can go that can FOR SURE tell me that the loan co cannot come after us for the difference?

If the loan was included in the bankruptcy filing, AND you didn't reaffirm the debt, you do not owe any balance if the car is turned in or repo'ed.

You can simply drop the car off at the lender's office and give them the keys. They may try to scare you into thinking that you owe money, but you have nothing to worry about as long as you have a discharged bankruptcy and you didn't reaffirm the debt.

If the lender tries to collect on the debt after you turn in the car, complain to the bankruptcy trustee.