Legal Question in Bankruptcy in California

Reaffirmation and Spouse's credit score
I recently received a discharge for Ch 7 as a sole person. All the debt was my own, except for a car which my husband is joint owner.

I learned that the reaffirmation agreement was never received. If we walk away from the vehicle, what will show on my husband's credit?

If we ''keep and pay'' - do we risk having the car repossessed (loan is from credit union). If we pay off the car, can they still repossess (years down the line?)

Thanks!

Asked on 12/10/08, 1:11 am

2 Answers from Attorneys

Brian Whitaker Lifeline Legal, LLP

0 users found helpful

0 attorneys agreed

Re: Reaffirmation and Spouse's credit score

If you walk away from the vehicle, your husband will be responsible for the deficiency balance owed after the car is wholesaled. Consequently, his credit will likely reflect not only the repo but also the judgment (if he is ultimately sued for that balance).

If you keep the car and keep up the payments, it is unlikely that the credit union would exercise its arguable right to repossess it simply because you filed BK (Ford Motor Credit is the only company I have personally seen do this on occasion).

The would, of course, have no right to repo the car if you have paid it off.

Answered on 12/10/08, 5:08 am

Mark as helpful