Auto after BK 7

[BobbyJ]

My Ch7 BK was discharged in January 2014.  I was not able to re-affirm my auto loan with PSECU even know my lawyer tried to do so.  They wanted the lawyer to sign the documents and they would not.

I have never been late on any payment and continue to make the payments on time every month. 

I want to get another car but I am not sure if my credit will be hit with a repo if I have PSECU come and pick up the auto?  Are there any other consequences I should be concerned about if I surrender the auto?

Thanks,

[0REDSOX7]

If you're auto loan was not reaffirmed, then it will never show a repo.

It should stay as a zero balance and IIB.

I did what you did. Surrendered two cars post discharge. They came and got them and that was it.

They are required by law to send you letters for compliance purchases that they will sell the car at auction and you will be required to pay the difference. Blah. Blah. Blah. That won apply to you - but a legal requirement.

You will be fine. No repo on your reports.

Good luck and happy rebuilding.

[approvedbyme]

YUP, afraid to say voluntary repos are the worse. You appear to be back on track with yor credit. I was looking at all of the CC you have since bankruptcy, and am in AWE....I have just begun the Ch. 7 process, as I had my 341 meeting on yesterday. Good luck to you, but reconsider the repo.

[approvedbyme]

OK, you're correct I read the original post wrong....

[ezdriver]

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@BobbyJ wrote:

My Ch7 BK was discharged in January 2014.  I was not able to re-affirm my auto loan with PSECU even know my lawyer tried to do so.  They wanted the lawyer to sign the documents and they would not.

I have never been late on any payment and continue to make the payments on time every month. 

I want to get another car but I am not sure if my credit will be hit with a repo if I have PSECU come and pick up the auto?  Are there any other consequences I should be concerned about if I surrender the auto?

Thanks,

---

Your attorney did you a favor. Reaffirming auto loans is a big mistake. Now you no longer are legally liable for the repayment of the loan. As long as you keep paying, the creditor may just let you keep it. At least you now have the option of letting it go or keeping it with no further impact on your credit.

[BobbyJ]

Thanks Red, I am very happy to hear I dont have to worry about my auto if I surrender it.  It is a 2009 VW Jetta SE with 80K miles and runs great, no issues.  I want to buy a 2012 BMW 528i and I can easily afford it.

Just wanted to be sure before I buy another car that I wasnt screwing myself.

Thanks everyone for the valuable advice!!!!!!

[TRC_WA]

I'm curious how you had multiple CC accounts "survive the BK filing."

I thought everything had to be included?

[0REDSOX7]

TRC, the law states you have to include all debts. I had cards that had a zero balance and were excluded from my petition. They were closed anyway as they did a periodic credit review and saw the BK and closed them automatically.

Some lenders don't care - so it is possible that of the cards had zero balance at time of filing through discharge that a card can survive.

[BobbyJ]

Hey TRC,

I live in CA and my attorneys only included those accounts that had a balance when my bk petition was filed in Oct 2013.  I called Fort Knox Credit Union before I filed to see what whould happen to my Platinum Visa and they told me as long as I didnt have a balance at the time of filing they would not close my card.  Over half of my credit cards at the time of BK filing were at zero balance long before I filed or thought about filing for Ch 7. I know I was very lucky to have 8 credit cards remain open and report positively.  I was never late on any account before the BK and that may be why some accounts survived due to the excellent payment history and no balances.

[TRC_WA]

That's pretty cool... glad it worked out for you the way it did.

My 13 case was somewhat similar... I kept my car and maintained the 4 years of payments throughout which had me at a 630-640 score when I got my discharge last year.  It could have been a lot worse... the rebuild has been smooth and painless.