If a car was included in my now discharged bankruptcy, if it is repossessed how will this affect my credit?
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If a car was included in my now discharged bankruptcy, if it is repossessed how will this affect my credit?
My bankruptcy was discharged 15 months ago; my husband did not file with me. Then 5 months ago, my husband and I came across some financial hardship and have been unable to make any car payments.
Asked on January 4, 2014 under Bankruptcy Law, Texas
Answers:
Malissa Walden / Kansas City Bankruptcy Attorneys Walden & Pfannenstiel, LLC
Answered 10 years ago | Contributor
If you reaffirmed on the debt then you are responsible for it and collection efforts may begin. If the car is repossessed and there is a deficiency then they can try to collect these funds from you.
If you did not sign a reaffirmation agreement, then the car can be repossessed, but they have no other recourse on the debt.
However, is the debt in both your and your husband's name? This will make a difference since your husband did not file bankruptcy with you. If his name is also on the car and it is repossessed they can collect again him.
Terence Fenelon / Law Offices of Terence Fenelon
Answered 10 years ago | Contributor
If the car loan was reaffirmed by by you, and later later defaulted upon, then yes, it will affect your credit. If, however, no reaffirmation was entered inthe bankruptcy, then your personal liabilitity was discharged and the credit reflection will be on your husband, I hope thay helps.
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