What to do if I filed Chapter 7 and my vehicle loan matured a month after but the lender isn’t wiling to reaffirm the loan?

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What to do if I filed Chapter 7 and my vehicle loan matured a month after but the lender isn’t wiling to reaffirm the loan?

I was informed that lender has charged off $4120 debt but saidthat if I pay the balance I could keep the vehicle. Will I or will the trustee and the courts order the sale of the vehicle anyway since the allowance for cars in my state is $3450. I tried looking into redemption loans but raised the question, is it worth it if its taken or sold in the end. Couldn’t afford an attorney so I did all myself.

Asked on December 16, 2012 under Bankruptcy Law, Ohio

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the lender will not reaffirm the secured loan for thevehicle that you are making payments on pending your Chapter 7 bankruptcy filing then under the law you will have to return the vehicle in exchange from being excused from any further payments under the loan. The above is your option.


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