What protection is a debtor given if they re-affirm their car loan and then have it voluntarily repossessed?

Question Details:

My bankruptcy was discharged about 2 years ago and my car was included. I'm going to have to hand the car over to the finance company and I want to know if I was still protected under the bankruptcy since I reaffirmed the car loan?

Asked 11/11/2011 under Bankruptcy | 167 View(s) | More Legal Topics

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Bankruptcy Law Answers

Mark J. Markus / Mark J. Markus, Law Offices of Answered 6 months ago | Contributor This attorney is licensed in California

I'm not sure what you mean by "protected." If in fact you reaffirmed the loan (which is usually a VERY bad idea), then you took the vehicle out of the bankruptcy discharge and created a new debt for which you are liable. If this wasn't explained to you by your attorney or the bankruptcy judge, one of them didn't do their job.

If you turn in your car, you are liable for whatever the deficiency balance is after it is sold.

Mark J. Markus, Attorney at Law

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