Am I now obligated to continue the payments, or may I just surrender the car without consequence? 30 Answers as of February 14, 2014

I filed Chapter 7 and did not include my vehicle in the documents. It has been 3 weeks post my 341 meeting. I now realize that continuing to make my payments will not be in my interest as far as building new credit and I would like to surrender the vehicle.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
You can surrender your car to the bank and not be liable for any future payments. That is the relief afforded by the bankruptcy discharge.
Answer Applies to: Indiana
Replied: 2/14/2014
Stephens Gourley & Bywater | David A. Stephens
You can surrender, but you may need to amend your schedules to reflect the debt and the intention to surrender.
Answer Applies to: Nevada
Replied: 2/3/2014
The Law Office of M Grater LLC
The Law Office of M Grater LLC | Mark O. Grater
You can stop payments and the balance of the debt should be included in your discharge. The car loan should have been included in Schedule D of your filing.
Answer Applies to: Connecticut
Replied: 2/3/2014
Rhymer Law Firm
Rhymer Law Firm | William Rhymer
I would suggest that you promptly tell your attorney. Usually, you can amend your schedules and add it. Then amend your Statement of Intentions to surrender it. Wish you luck.
Answer Applies to: Georgia
Replied: 1/31/2014
Stuart P Gelberg
Stuart P Gelberg | Stuart P Gelberg
So your Q is: I didn't list the vehicle and now I want all the benefits of bkry for that vehicle??? Not including your vehicle (and I guess the lender)on the paperwork is a crime. Amend your papers immediately! Do not "reaffirm" and you will have no further liability
Answer Applies to: New York
Replied: 1/30/2014
    Law Office of Jeffrey Solomon
    Law Office of Jeffrey Solomon | Jeffrey Solomon
    All assets and debts must be listed in your bankruptcy, regardless of your intent as to what you want to do with the property. You should amend the bankruptcy schedules to list the car and the car loan, and you can include in your statement of intentions that you will surrender the vehicle.
    Answer Applies to: Florida
    Replied: 1/28/2014
    Kirby G. Moss PC | Kirby G. Moss
    You can amend your schedule to add the car loan and car (best practice) and then surrender the car.
    Answer Applies to: Indiana
    Replied: 1/28/2014
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    First you need to amend your bankruptcy papers to add the car as an asset and add the lender as a creditor. You are required to do so even if you were planning on keeping the car. Second, you should also do it so that the lender is listed so they will be included in the discharge if you give back the car to avoid any possible liability for a deficiency.
    Answer Applies to: California
    Replied: 1/28/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    You need to file an Amended Statement of Intention to indicate that you are surrendering the vehicle. Then call the creditor and make arrangements to get the vehicle returned. If you signed a Reaffirmation Agreement, you need to revoke it, IN WRITING. A short letter with all relevant information to the creditor telling them you are REVOKING the Reaffirmation Agreement. Send that certified mail, with a copy (regular mail) to your attorney, the Court, the Chapter 7 Trustee, and the U.S. Trustee for your District.
    Answer Applies to: Colorado
    Replied: 1/28/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    I am confused by the wording of your question. You say you "did not include" the vehicle. Whether you keep the vehicle or not, bankruptcy law requires that the vehicle and the vehicle loan be included in your bankruptcy paperwork. If you failed to disclose both the vehicle, the loan, or both, it is crucial that you amend your bankruptcy immediately because failing to do so will have serious and possibly criminal repercussions.
    Answer Applies to: Nevada
    Replied: 1/28/2014
    Law Office of Michael Johnson
    Law Office of Michael Johnson | Michael Johnson
    You can but you need to amend your documents and if you signed a reaffirmation agreement, you need to rescind it.
    Answer Applies to: Florida
    Replied: 1/28/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    I am not sure which state you're in, but you should amend Schedule D to disclose the fact that you have the car loan. Also amend Schedule B if necessary to list the actual car (year, make and model) and its fair market value. You have to fully disclose all debts and assets. If not, then you haven't been truthful, and you could face problems in the future. Moreover, if you wish to surrender the car loan, it's better that you amend Schedule D to list the car loan, because that would be the better way to fix any potential errors on your credit report later on.
    Answer Applies to: Pennsylvania
    Replied: 1/28/2014
    Law Office of Mark B. French
    Law Office of Mark B. French | Mark B. French
    I suggest that you consult with the lawyer handling your case. You signed the documents "under penalty of perjury", swearing that all of your creditors were listed. You can amend the paperwork and add the vehicle lender as a creditor, but you should confirm whether there will be any consequences for deliberately failing to list them on the original paperwork.
    Answer Applies to: Texas
    Replied: 1/28/2014
    Heineman Law Office
    Heineman Law Office | Jeff Heineman
    You can surrender it, and you should not have any consequences with the lender.
    Answer Applies to: Idaho
    Replied: 1/28/2014
    Meister & McCracken Law Firm, PLLC | Joanne M. McCracken
    If you did not disclose the debt for the car in your bankruptcy schedules, you need to amend immediately as you have most likely committed fraud you are required by law to list all your creditors. Once that has been corrected, you may choose to surrender the car. Contact your attorney immediately to correct this situation.
    Answer Applies to: Arkansas
    Replied: 1/28/2014
    Barr, Jones & Associates LLP
    Barr, Jones & Associates LLP | Andrew Brasse
    As long as you did not sign a reaffirmation agreement on the car, you can let it go and not be obligated on any payments going forward. If you did sign a reaffirmation agreement, you should have your attorney remove it from the court's record.
    Answer Applies to: Ohio
    Replied: 1/28/2014
    Wellman Law LLC
    Wellman Law LLC | Keith A. Wellman
    If the vehicle is "not included in the documents" there is a problem. There are at the very least 4, often up to 8, places in the documents where information about a loan secured by a vehicle should be disclosed. This is without regard to your intentions. In fact, one of these many forms is called the "Statement of Intentions" where you state whether you intend to reaffirm secured debts or surrender the collateral. Some of the other potential places where the documents would refer to this loan include Schedule B where you disclose all of your property, Schedule C where you claim applicable exemptions on your property, Schedule D where you disclose what secured debts you have, Schedule J where you state all of your ongoing expenses including car payments, the Statement of Financial Affairs often applies because monthly payments of $200 or more would cause #3 to apply, the means test form would indicate the payment in the case of an above median debtor, and most important as it applies to your question, the Creditor Address Matrix should list this debt. If they are not in the address matrix, then you probably have a lot of amendments to make and presuming you do not have an attorney, may need to contact the court clerk for guidance as jurisdictions vary with the procedure for adding creditors. By the way, reaffirming a debt would help rebuild credit, so I don't know if you're aware of that aspect of the Bankruptcy process. I also find the rationale unusual. People are typically petrified of losing a vehicle they are current on, as opposed to casually considering how to best rebuild their credit. The whole situation begs for legal counsel.
    Answer Applies to: Kansas
    Replied: 1/28/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    You can do that. BUT you should amended your schedule D to include the car so creditor knows you filed for bankruptcy (and the law requires you to list ALL of your debts).
    Answer Applies to: California
    Replied: 1/28/2014
    Stittleburg Law Office
    Stittleburg Law Office | Bernd Stittleburg
    Advise your attorney you want to change the Intentions page to surrender the vehicle.
    Answer Applies to: Georgia
    Replied: 1/28/2014
    Danville Law Group | Scott Jordan
    When you say that you "did not include my vehicle in the documents", do you mean that you did not list the car as an asset or a debt? You are required to list all debts and all assets, so you need to amend Schedules C, D and E immediately to list the vehicle. You will also need to amend the Statement of Intention to list the vehicle and what you want to do with it. You can surrender it. You must do these things immediately.
    Answer Applies to: California
    Replied: 1/28/2014
    LAW OFFICES OF CRAIG BURNETT | Craig Alan Burnett
    If you "did not include [your] vehicle" in your Chapter 7 documents, you made a big mistake, may have committed perjury, and may be subject to having your discharge denied. Did you both not include the vehicle and not include the secured debt on it? If so, you must immediately amend your schedules to include both the vehicle and the claim against it. Did your trustee inquire about whether you own a vehicle? Did he or she ask you if you listed all of your assets and all of your debts? If so, how did you respond? In answer to your question, you may surrender the vehicle without further liability as long as your lender has notice of your bankruptcy. But your lender may not even be aware of your bankruptcy if you did not list that obligation.
    Answer Applies to: California
    Replied: 1/28/2014
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    They can come after you. Call your attorney.
    Answer Applies to: Alabama
    Replied: 1/28/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Are you saying you did not list the car loan in your case filing? You are required to disclose ALL debts when you file bankruptcy. In fact, you signed under penalty of perjury that you listed everyone to whom you owe money. I suggest that you very quickly amend your schedules and your creditor matrix to include your car lender in your case.
    Answer Applies to: Colorado
    Replied: 1/28/2014
    Law Offices of Marc Weinberg | Marc Weinberg
    First, your car should have been scheduled in "Schedule D", which is secured creditors, and you should have stated your intention towards the vehicle in "Statement of Intention". To clean things up, I would file two amendments. Amend Schedule D to add the vehicle, and amend the Statement of Intention. In the Statement of Intention, I would check the "surrender" box. Then take the vehicle back to the dealer and give it to them. Be sure you get a receipt for dropping the vehicle off at the dealer.
    Answer Applies to: California
    Replied: 1/28/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    You can turn over the vehicle, but you should amend your Schedule F to include the debt.
    Answer Applies to: California
    Replied: 1/28/2014
    OlsenDaines, PC
    OlsenDaines, PC | Kristoffer Sperry
    Every creditor should have been listed in your bankruptcy regardless of whether you were going to continue making payments or not. You should amend your bankruptcy schedules to include the car (the trustee should have discovered the car at the hearing and directed you to amend your paperwork). Once the lender has been notified of your bankruptcy you can simply surrender your vehicle and you will now owe a deficiency.
    Answer Applies to: Idaho
    Replied: 1/28/2014
    The Troglin Firm | William M. Troglin
    If you did not list the automobile on schedules B and D of the bankruptcy filing YOU MUST amend the schedules and add the vehicle. Then call the lender and tell them to come get the car or ask them where they want it delivered. Either way get someone representing the dealer to give you a signed inspection form showing any damage to the vehicle.
    Answer Applies to: Georgia
    Replied: 1/28/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You must amend your bk petition and add your vehicle. When you file bk must list all assets and debts. Under the statement of intention section you state whether you intend to keep or surrender your vehicle. Note surrender and mail this to the creditor after filing with the court. Then contact the creditor to arrange surrender.
    Answer Applies to: Nevada
    Replied: 1/28/2014
    Westbrook Law Firm, PLLC
    Westbrook Law Firm, PLLC | Nicholas Westbrook
    If you do not reaffirm the debt on the vehicle, you will not be obligated to pay the car, and the lender will not have the right to collect against you. So you can surrender the vehicle and avoid personal liability going forward ? provided you do not sign a Reaffirmation Agreement with the car lender.
    Answer Applies to: Texas
    Replied: 1/28/2014
Click to View More Answers:
12 3 4 5 6 Free Legal QuestionsConnect with a local attorney