Legal Question in Bankruptcy in California

Creditor would not reaffirm car loan, can I give it back.

In Aug. 1998 My ex-wife and I went to Bankruptcy Court and were discharged of all our debts. We lost the house, but kept the contents. At the time we had two vehicles that we wanted to keep. Nissan allowed us to reaffirm our sentra, while GMAC would not reaffirm our pontiac. GMAC stated that they do not reaffirm auto loans. What is my legal responsibility, If I turn in the pontiac and discontinue making payments on it.


Asked on 1/10/01, 11:38 am

1 Answer from Attorneys
Shai Oved The Law Offices of Shai Oved

Re: Creditor would not reaffirm car loan, can I give it back.

In California, you are not required to reaffirm secured loans. If you want to keep the property, you must continue making payments. If you want, you can return the vehicle (where you did not reaffirm the loan). Your personal liability ended when you received your discharge. GMAC cannot ask you for any additional money (assuming you did not intentionally or negligently damage the car after the date of the filing of your bankruptcy petition which could entitle the lender to possible post-petition damages.)

Read more
Answered on 1/23/01, 11:11 am


Related Questions & Answers

More Bankruptcy Law questions and answers in California