Legal Question in Bankruptcy in Hawaii

Re: Can I stop paying on a lien I attempted to reaffi

If you stop paying and the car hasn't been paid in full, then the credit can repossess the car. If you want to keep the car you need to pay the debt in full. If you werre unable to pay off the vehicle, the lack of reaffirmation agreement benefits you in that if the sale of the repossessed vehicle didn't cover the entire lien, you would not be personally responsible for the debt.

You need to find out what the debt amount remaining is and pay it off if you want to get the lien released and keep the car.

Re: Can I stop paying on a lien I attempted to reaffi

Collateralized loans like car loans or mortgages are odd-duck things in bankruptcy. Such loans are what's called "purchase money" loans, and the item purchased (here, your car) secures the loan. This security gives the lender the right, even after a bankruptcy discharge, to repossess the car if the debtor stops paying on the loan before it is paid off.

Check with the lender (you have to call them; they are forbidden by the bankruptcy discharge order to contact you) to ask what the balance on the loan is currently. If they refuse to answer (and some clerk may decide that the bankruptcy discharge prevents them from talking to you even if you call them), talk to your lawyer if you had one (else hire one now). There are ways to get that information released to you.

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