Is it possible

[akw]

What is the name of your state?Washington DC

I filed bankruptcy in April 05 and the debts has been discharged in July. However, I didn;t file my car in the bankruptcy,is it possible to go back and include the car in the bankruptcy?.The note is very high and is still posing a finanical hardship upon me. I owe a lot of negative equity. I have tried refinance the car but do to the bankruptcy I cannot. What can I do at this point?

Thanks

 

[Ladynred]

Hang on there. You cannot EXCLUDE ANY debt from bankruptcy, ALL debts MUST be listed.

DID you sign a reaffirmation agreement on the car ??
IF you did, I'm afraid you're stuck with it and if you give it back, you will be liable for the repo and the deficiency balance after the car is sold.

If you did NOT sign a reaffirmation agreement, then the debt was discharged and you can just give it back without any worries at all.

 

[akw]

Please Explain Further

What is the reaffirmation agreement on the car? I only signed the bankruptcy papers that was given to by the attorney. Would that include the reaffirmation agreement or is that something separate from the bankruptcy papers? The car is included on the BK papers, but I still have it and making payments.

thanks

 

[SkankCheese]

So you did.... or you didn't?

Well if you already included it in your bankruptcy there is no need to go back and add it.
Reaffirmation papers are different than the regular ones, when you file. It's an agreement between you and the car/finance company that basically says you are still legally responsible for making the payments. If you didn't sign anything like that then you didn't reaffirm, and you simply still have the car b/c you are still making the payments. If the car note is getting to be too much- you can just give the car back, and owe nothing more on it. But you MUST have included it in your filing for this 'privilege'. I'm a little confused b/c at first you said you didn't, though.

 

[Ladynred]

As already stated, the reaffirmation is a completely separate document. If you didn't sign one, then the debt for the car loan was discharged along with your other debts. This means that you can safely give the car back to the lender w/o any repo on your records and NO liability for any deficiency, fees or anything else.

 

[akw]

Making It Clear

Sorry for the confusion, but it is confusing me.

I didnt sign anything with the car finance company.

The car is listed on the bankruptcy papers as a debt. Does it automatically means it was a discharged debt? Although it doesnt stated that on my credit report.

Please make it clear. I am making payments on the car. Am I responsbile for the debt or am I not? I have been receiving tons of offers from car dealers about purchasing a new car after bankruptcy.

Thanks

 

[Ladynred]

I didnt sign anything with the car finance company.

Fine. Then you did NOT reaffirm and the debt was DISCHARGED.

The car is listed on the bankruptcy papers as a debt. Does it automatically means it was a discharged debt? Although it doesnt stated that on my credit report.

Your credit report SHOULD read a ZERO balance and show 'included in bankruptcy', and I'd be willing to be that NONE of your payments are showing either. If it is NOT being reported as IIB with a ZERO balance, then your lender has failed to properly update your report for a DISCHARGED debt.

Please make it clear. I am making payments on the car. Am I responsbile for the debt or am I not? I have been receiving tons of offers from car dealers about purchasing a new car after bankruptcy.

How much clearer can I make it ??

- you did NOT reaffirm the loan
- the debt for the car loan was DISCHARGED
- Discharge means you have NO liability for the debt - you are NOT responsible for it should you decide to give the car back.
- Because the car loan is a secured loan (secured by the vehicle), you could not keep the car unless you kept paying for it. Don't get the idea that you can stop paying and keep the car, it doesn't work that way. You don't want the car, stop paying and give it back to the bank.

Yeah.. you'll get tons of offers alright.. and the interest rate on every one of them will be horrendous - probably around 18-20% if not more. They know if they nail you and lock you into another new car loan at such horrible rates that you cannot file for bankruptcy again and you're stuck if you can't make the payments.

Forget the new car offers, save some money and buy a good used car for a couple of years until your credit recovers a little bit and you can get a better rate.

 

[toughluck73]

Doesn't anyone read documents before they sign anymore, particularly when their financial future depends on it? Geez.

 

[akw]

Got IT Now

Thanks for the advice. Be it good or smart!

I paid an attorney to do the BK and as a professional that should have been explained to me! I have been paying the car note. I wish I have known this information all the while paying. Another question, how would I go about reaffirming the debt with the car company to negoiate another contract and interest rate? Or do you think it be best to hire another attorney if interested in doing such or just walk away from the debt of the car altogether?
I am thinking trying to settle upon another agreement with them would take a long time or even get into back and forth issues with them.

I do like the thought of just trying to get another vehicle (pre-owned) and be done with what I have..

More advice or thoughts.....

 

[Ladynred]

how would I go about reaffirming the debt with the car company to negoiate another contract and interest rate?

You can't reaffirm now. Reaffirmations must be approved by the court and completed before your DISCHARGE. Your bankruptcy is over and done with, the debt has already been discharged.

Or do you think it be best to hire another attorney if interested in doing such or just walk away from the debt of the car altogether?

An attorney isn't going to do you any good, there's nothing they can do. Just walk away from the vehicle - you can't afford it anyway.

 

[akw]

Are you sure I can

More advice needed

I read all the comments above and everyone seems to think that I can turn the car over since I did not sign or "re-affirm" the debt for the car.

As I re-read my BK papers what about the section that read "individual debtor's statement of intention"..my car is listed under the property to be retained, what does that mean? Is the debt still valid or not? Is the advce given still accurate, that if I did not sign anything from the finance company stating that I would continue to pay, that I did not re-affirm the debt?

There are 3 applicable statements on the BK papers:

Property is claimed as exempt, property will be redeemed pursuant to 11 U.S.C. 722, and debt will be reaffirmed pursuant to 11 U.S.C. 524

Then it states debtor will retain collateral and continue to male regular payments...Now what?

If I turned the car in at this point, could the finance company deem it as a repossession?

Advice needed immediately....

 

[Ladynred]

Once again, IF YOU DID NOT SIGN A REAFFIRMATION AGREEMENT THE DEBT HAS BEEN DISCHARGED !

my car is listed under the property to be retained, what does that mean?

Just what it says, you said you were going to KEEP the vehicle - which you did.

Property is claimed as exempt, property will be redeemed pursuant to 11 U.S.C. 722, and debt will be reaffirmed pursuant to 11 U.S.C. 524

You claimed the equity as exempt - if you had any.

However, if you didn't pay a lump sum to keep the car (redeem) or sign any agreement with the lender (reaffirm), then neither of these means anything. These things are NOT carved in stone.

Then it states debtor will retain collateral and continue to male regular payments...Now what?

It means just what it says, you were going to keep paying to keep the car. Now.. nothing.

If I turned the car in at this point, could the finance company deem it as a repossession?

NO ! The loan/debt WAS DISCHARGED ! It is NOT a VALID debt, its been discharged. WALK AWAY if you can't afford to keep it.

 

[akw]

Money Back

Being that I have recently made payments will I be able to get that money returned to me?

Also, Ladynred, who are you? You provide good advice, but can it trusted..Not disrepect intended....inquirying minds want to know

thanks

 

[SkankCheese]

Ladynred does have good advice, everything that I've seen she's posted, has been helpful and accurate.

I'm sure I'll be corrected if I'm wrong- but I don't think you can get any money back. You've been paying to use the car, and you've used it.. Kind of like a rental deal. You pay for as long as you need it, and return it when you're done.. but you can't go and collect anything you've paid to them already.
Don't quote me... but I can't see them cutting you a check, when you've had the vehicle in your possesion, and using it.

 

[Ladynred]

Being that I have recently made payments will I be able to get that money returned to me?

Afraid not, sorry

Also, Ladynred, who are you? You provide good advice, but can it trusted.

Who am I ?? I'm a volunteer who's been here (and on 3 other credit-related boards) for over 3 years now. I've done tons of research and studying on many issues related to bankruptcy and credit issues, as well as havning had to handle enough similar issues personally.

If anything I say is wrong, there are other senior members who ARE lawyers who won't hesitate to jump in and correct me I keep learning daily.

Can my advice be trusted ?? I'm here to help people where I can. What would be my incentive to deliberately steer you or anyone wrong ?? I'm not a creditor or collector, or a lawyer, my profession is nowhere near that industry at all. I'm just trying to help others.