Legal Question in Bankruptcy in Minnesota
Chapter 7 - What happens to my car?
Im filing a chapter 7. I have an auto loan that is current, no late payments. I owe 19K on the car which is valued at 15K. What happens to this vehicle in a Chapter 7?
2 Answers from Attorneys
Re: Chapter 7 - What happens to my car?
It depends on whether you want to keep it. If so, you can reaffirm the debt, keep making the payments and keep it. If not, you can give it back and walk away. Dennis
Re: Chapter 7 - What happens to my car?
Some lenders allow debtors to continue making payments without reaffirming the debt. I usually recommend to my clients that they try this.
Reaffirming a debt can be a hazardous thing to do, because you have to say that paying the debt in question will not be a hardship. Such a statement contradicts everything else you have said up to that point, and raises a question as to which statements you made were true.
You should have a serious talk with your own attorney about this. If you are thinking of filing without a lawyer, don't do it.
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