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

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 on November 11, 2011 under Bankruptcy Law, Texas

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

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

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 9 years ago | Contributor

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

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr


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