Legal Question in Bankruptcy in New York

Re: post chapter 7 bankruptcy

If you had the car loan at the time you filed for bankruptcy, the issue is whether you will be liable for any deficiency as a result of surrendering the car. If you listed the car loan in your schedules and did not sign a reaffirmation agreement, then you will not be liable for any deficiency (the difference between the total due on the loan and the amount the lender sells the car for at auction). If you signed a reaffirmation agreement (which is usually required if you filed after Oct. 2005), then you will still be liable for the deficiency.

Re: post chapter 7 bankruptcy

There is nothing in the law to prevent a post-discharge surrender of collateral to the lender who holds the secured loan. However, the lender may have its own policies about consenting to the surrender.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.