help with car matter

[tstevans]

What is the name of your state? PA
recently my chapter 7 bankruptcy was discharged, i kept a car though the bankruptcy because my dad was on the loan and i didn't want to negatively affect him. i am currently in the process of buying a new car, i was going to trade in the old one. When the dealership called to get a payoff value Chrylser informed them that the car was included in the bankruptcy, so the new dealership is telling me to just give it back to Chrysler. What i need to know is if i do that how will my dad be effected. will they go after him for what is owed on it even after they have the car or since it was included in the bankrupcty which it was not suppose to i can give it back and not have to worry about it? I really appreciate any help because my attorney is not retunring any of my phone calls.

 

[JETX]

recently my chapter 7 bankruptcy was discharged, i kept a car though the bankruptcy because my dad was on the loan and i didn't want to negatively affect him. i am currently in the process of buying a new car, i was going to trade in the old one. When the dealership called to get a payoff value Chrylser informed them that the car was included in the bankruptcy, so the new dealership is telling me to just give it back to Chrysler. What i need to know is if i do that how will my dad be effected. will they go after him for what is owed on it even after they have the car or since it was included in the bankrupcty which it was not suppose to i can give it back and not have to worry about it?

I assume you mean that your father was a co-signer on your car note, financed with Chrysler, correct??
If so, then father is currently liable for any unpaid amounts on your loan... whether you trade it in or not. In fact, if the vehicle was not 'affirmed' in the bankruptcy, the vehicle likely already belongs to the lender.

 

[tstevans]

I assume you mean that your father was a co-signer on your car note, financed with Chrysler, correct??
If so, then father is currently liable for any unpaid amounts on your loan... whether you trade it in or not. In fact, if the vehicle was not 'affirmed' in the bankruptcy, the vehicle likely already belongs to the lender.

my dad was actually primary on the loan and i never reaffirmed the car loan be cuase my attorney advised against it. I just want to make sure i don't hurt my dad's credit with any of this. when you say it belongs to the lendor what do you mean and what do you mean that even if i trade it in he is responsible? Wouldn't the balance be paid if it was traded in?

 

[JETX]

when you say it belongs to the lendor what do you mean

Simple. Since you didn't reaffirm the car debt, YOUR obligation to repay the loan was discharged in the court order.... and the vehicle became the property of the lender (under their security collateral rights in the agreement).

and what do you mean that even if i trade it in he is responsible?

The discharge of YOUR debt obligation does nothing to waive your fathers guarantor obligation.

Wouldn't the balance be paid if it was traded in?

That depends entirely on your trade-in agreement. If the agreement is that they will pay off your note, in full, then the lender wouldn't have any need to pursue recovery from anyone. However, if the trade-in deal is for less than the FULL amount owed (debt, plus late fees, plus costs, etc.), then they can pursue that unpaid obligation against your father.

 

[tstevans]

Simple. Since you didn't reaffirm the car debt, YOUR obligation to repay the loan was discharged in the court order.... and the vehicle became the property of the lender (under their security collateral rights in the agreement).


The discharge of YOUR debt obligation does nothing to waive your fathers guarantor obligation.


That depends entirely on your trade-in agreement. If the agreement is that they will pay off your note, in full, then the lender wouldn't have any need to pursue recovery from anyone. However, if the trade-in deal is for less than the FULL amount owed (debt, plus late fees, plus costs, etc.), then they can pursue that unpaid obligation against your father.

thank you for the help, I have been current with all payments so there should be no late fees. is the best thing to do is reaffirm the loan if it is still possible, which i am not sure of. and if i do that can i still trade the car in?

 

[Who's Liable?]

thank you for the help, I have been current with all payments so there should be no late fees. is the best thing to do is reaffirm the loan if it is still possible, which i am not sure of. and if i do that can i still trade the car in?

You are missing the point... The car is no longer yours... if you did NOT re-affirm, any obligation on your end to continue paying, and ownership of the vehilcle is gone. It now belongs solely to your father and the lending institution...

Since your father is the only one left on the note, it is up to him to decide what to do with the car.

 

[JETX]

It now belongs solely to your father and the lending institution...[/qutoe]
Actually, that depends largely on EXACTLY how the title has the names. If the title is solely in your name and you didn't reaffirm, the car belongs to the lienholder (lender).
If the title is in your name AND your fathers AND if the payments are on time, the car could still be 'owned' by your father (as his ownership wasn't forfeited in YOUR bankruptcy).