Legal Question in Bankruptcy in Virginia

Can your statement of intent be used against you?

I filed Chap 7 2 years ago. I filed a statement of intent to keep my auto. I did not sign a reaffirmation agreement.

I have remained current on the payments. The bank however. is not reporting to the credit bureaus that I am making the payments. When I pulled my credit report it says the bank has charged off the loan. I called the bank a few months ago and my loan is in a closed collections file. At the time, the representative that I spoke with said I could give up the car at anytime considering up until that point, they did not even know I still had the car. Since that time, my car has been in a accident and I think the insurance company may total the car. Can I keep the insurance money to purchase another car and not pay the bank off? Also, what happens if they don't total the car and I decide to keep the insurance money and not make the repairs? I really don't want to continue making payments on the car and feel that if they repo the car it won't hurt my credit any more than it already is.


Asked on 5/03/04, 8:32 pm

2 Answers from Attorneys
Richard S. Stolker Uptown Law, LLC

Re: Can your statement of intent be used against you?

If you received a discharge in your Chapter 7 case and you did not reaffirm the debt, then the debt has been discharged and there will be no financial liability if you surrender the car back to the finance company.

Read more
Answered on 5/03/04, 9:58 pm
Daniel Press Chung & Press, P.C.

Re: Can your statement of intent be used against you?

If you received a discharge and did not reaffirm, you can surrender the car at any point and not owe the bank. The insurance money would be yours unless the bank is named as an additional insured or loss payee on the insurance policy, as is often the case.

Read more
Answered on 5/04/04, 10:16 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Virginia