Personal Bankruptcy Reprecussions if payment on a vehicle that was discharged in a Chapter 7 stops?

[littlelisa]

I had a chapter 7 bankruptcy done in February in Virginia. My car was discharged but I am still making payments to keep the car. If I were to stop making payments and they repossess the car, can they sue me or am I protected by the bankruptcy? Also, would that show on my credit report since it was discharged because of the bankruptcy?

 

[army judge]

I had a chapter 7 bankruptcy done in February in Virginia. My car was discharged but I am still making payments to keep the car. If I were to stop making payments and they repossess the car, can they sue me or am I protected by the bankruptcy? Also, would that show on my credit report since it was discharged because of the bankruptcy?

Any, none, or all of the things you suppose could (might) happen.

You are at greater financial risk after reaffirming a debt, during a bankruptcy proceeding.

If you want to rid yourself of the car, why not get another person to assume your payments?

Or, call the creditor and ask them what would happen if any of teh above things occurred?

 

[despritfreya]

If you did not sign a reaffirmation agreement you cannot be sued under the contract. The loan was discharged in the bk and voluntary payments after the discharge do not revive or create a new debt. If you do not make the payments (which service the lien that passed through the bk unaffected) the lender has the right to take back its collateral, nothing more, nothing less. It cannot sue you for $$$.

If you did reaffirm the debt then the lender can repo, sell the vehicle, and sue you for the balance.

As to your creditor report, my guess, and it is only a guess, if the vehicle is repoed the repo will be reported as such is a truthful statement.