If in my Chapter 7 I chose to retain and pay pursuant to contract on my car loan, now my bankruptcy is discharged can I now give it back, sell it, etc?

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If in my Chapter 7 I chose to retain and pay pursuant to contract on my car loan, now my bankruptcy is discharged can I now give it back, sell it, etc?

My bankruptcy was discharged 3 months ago and I am trying to buy another car. What would be the consequences of giving it back? What can I do?

Asked on January 20, 2015 under Bankruptcy Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If your bankruptcy has been discharged and you had affirmed (kept paying on) the loan, you do not have any right to give the car back. The lender could choose to accept the car in satisfaction of your loan, but is not required to do so and, in fact, is rather unlikely to do so--they want money, not a car. If you default (stop paying on) your loan, they could sue you for the remaining balance.


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