Legal Question in Bankruptcy in California

I'm in California. I had a bankruptcy in November of 2008. The only thing I kept was my car. I worked like crazy to get the loan re-affirmed and thought it was. I have been paying my payment on time every month. I am upside down on the loan. I owe like $12,000 and the car is worth about $6,000. My payments are $390 a month, which has been increasingly difficult to maintain. I just found out by checking my credit report and speaking with my loan company that the loan was never re-affirmed, it was actually included in th bankruptcy. The loan company said that as long as I continue to make my payments the car is mine. I have another car that I drive, so, I was wondering, what would be the drawback to just letting the loan company know that I can no longer make my payments and letting them take it. Would it make my credit look any worse than it already does?


Asked on 9/22/09, 6:31 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

There would be no consequences. Your debt has been discharged and their only remedy if you stop making the payments would be to repo the vehicle. You cannot be held liable for any deficiency and they cannot legally report and further negative information on your credit report regarding the repo.

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Answered on 9/28/09, 12:41 pm


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