If I voluntarily surrender the car to the bank can they report it as a repossession or can they report it as another negative credit?

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If I voluntarily surrender the car to the bank can they report it as a repossession or can they report it as another negative credit?

My bankruptcy was discharged about 1 1/2 years ago and I petitioned to reaffirm my car loan. Since the I have made my payments thinking that I was re-building my credit however when I tried to buy a new car found out that my car had been listed as being filed in the bankruptcy and that there was a zero balance. The lender had never sent the reaffirmation papers to me so the loan was not reaffirmed. I believe that since it was filed in the bankruptcy it cannot be reported again however was hoping to receive clarification regarding this.

Asked on July 17, 2013 under Bankruptcy Law, Massachusetts

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Based upon what you have written about concerning your bankruptcy filing and a zero balance owing on it, it appears that the car loan was written off and you may actually own the car assuming that you have been sent the pink slip for it. If you return the car, it will be reported as a discharge under your bankruptcy filing and not a repossession. I suggest that you consult further with your bankruptcy attorney about your matter.


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