Is there a way to now add my husband's financed vehicle to the bankruptcy that was discharged? 21 Answers as of March 21, 2014

My husband filed for bankruptcy last year due to a medical disability that was discharged in September 2013. He kept his car because he thought he'd be able to keep up on the payments, but he is no longer able to. He did purchase it PRIOR to his bankruptcy filing, and has paid $10,000 towards his $20,000 note.

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Joseph Lehn, Esq
Joseph Lehn, Esq | Lehn Law, PA
The answer to this question will depend on if you signed a reaffirmation for the vehicle. If the reaffirmation agreement was signed the debt is owed.
Answer Applies to: Florida
Replied: 3/21/2014
Ronald K. Nims LLC | Ronald K. Nims
If your husband signed and filed a reaffirmation agreement, then he can't add the car loan to his bankruptcy. If he didn't sign a reaffirmation agreement, he has no obligation to continue to make payments on the car - of course, when he stops making payments the lender will repo the car.
Answer Applies to: Ohio
Replied: 3/21/2014
Tokarska Law Center
Tokarska Law Center | Kathryn U. Tokarska
The answer to the question whether he can stop paying, turn over the vehicle, and suffer no consequences as far as having to pay a deficiency depends on the answer to the question whether he reaffirmed the car loan in his bankruptcy. If he had reaffirmed, then he remains liable for the loan. If he had not reaffirmed then the legal obligation to pay on that loan has been discharged. If you're not sure if a reaffirmation was filed with the court, go to www.pacer.gov, look up the case, go through the docket report and see if there is a reaffirmation that was filed with the court. If it's not there, then it didn't happen.
Answer Applies to: California
Replied: 3/21/2014
Law Office of Marlin Branstetter
Law Office of Marlin Branstetter | Marlin Branstetter
If he did not sign a reaffirmation agreement he can return the car and not pay the balance. If he signed the agreement he will be responsible for any deficiency balance owed on the car if he returns it.
Answer Applies to: California
Replied: 3/21/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
This vehicle should have been included in the bankruptcy even if your spouse intended to keep it. If it wasn't listed, you will have a mess straightening it out. If the vehicle was reaffirmed after filing and the court signed off on it, the window of time to reject the reaffirmation has closed.
Answer Applies to: Nevada
Replied: 3/21/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    As long as he did not assume the lease he can surrender it. You need to look at you paperwork. See schedule E.
    Answer Applies to: California
    Replied: 3/21/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If he did not reaffirm that debt then he is not liable for it and can surrender the vehicle without repayment.
    Answer Applies to: New York
    Replied: 3/21/2014
    The Law Office of M Grater LLC
    The Law Office of M Grater LLC | Mark O. Grater
    If the underlying car loan was listed at the time he filed, than the balance will be discharged automatically once repossessed.
    Answer Applies to: Connecticut
    Replied: 3/21/2014
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    If your husband failed to list the vehicle and signed papers under penalty of perjury stating he did not have an interest in and debt secured by said vehicle, that is a real problem. In short, he may have committed perjury. In that case, he must inform the bankruptcy trustee of the omitted asset, and move to reopen the case to include it. Hopefully this won't result in the revocation of his discharge. Assuming this was a Chapter 7 case and no assets were distributed by the Trustee, then the debt owed on the vehicle was discharged regardless of whether it was listed or not. If instead he did list his vehicle and the debt, then it was already discharged and he need not do anything further.
    Answer Applies to: California
    Replied: 3/21/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    So long as your husband did not sign a reaffirmation agreement with the car lender he can surrender the car to the lender without any resulting deficiency liability.
    Answer Applies to: Nevada
    Replied: 3/21/2014
    Stephens Gourley & Bywater | David A. Stephens
    It may have been included. You should check your schedules.
    Answer Applies to: Nevada
    Replied: 3/21/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    If your husband did not execute and file a reaffirmation agreement for the vehicle loan with the bankruptcy court then he may surrender the vehicle to the creditor without being liable for any debt balance from the surrender and sale of the vehicle.
    Answer Applies to: Indiana
    Replied: 3/21/2014
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Assuming the debt was listed and the creditor received notice, and assuming no reaffirmation agreement was signed, your husband can simply surrender the vehicle to the lien holder with no liability. If he did sign the reaffirmation agreement, he is stuck with the obligation. At a minimum, call the attorney who helped you with the Chapter 7 for his or her advice.
    Answer Applies to: Colorado
    Replied: 3/21/2014
    Idaho Bankruptcy Law | Paul Ross
    Generally, if he listed the debt on his bankruptcy, then he can turn the car back at any time and will not be liable for a deficiency. The car loan should not be reporting on his credit either.
    Answer Applies to: Idaho
    Replied: 3/21/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Was the vehicle loan disclosed in his bankruptcy paperwork? Did he sign a reaffirmation agreement? Assuming the loan was taken out before the petition date and assuming the lender was properly listed and notified of the filing, and assuming he did not sign a reaffirmation agreement for the loan, then the debt would have been part if his discharge an he should be able to return the vehicle and walk away from the rest of the note. Those are very important assumptions. And, it is important to understand that if the loan was a joint loan or if there was a cosigner then that other party will remain responsible for payment of the full remaining balance on the note.
    Answer Applies to: Colorado
    Replied: 3/21/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Unfortunately, the debt is his personally and was not discharged.
    Answer Applies to: California
    Replied: 3/21/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    If he reaffirmed the auto loan, it is too late to have it discharged in bankruptcy. If not, then he can surrender it and walk away from the debt. Regardless, if there is enough equity in it, there might not be a deficiency after they sell it and then he would be OK either way.
    Answer Applies to: Oregon
    Replied: 3/21/2014
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    It was probably part of his bankruptcy. All assets as well as all liabilities are listed when a bankruptcy is filed. The question is whether or not you husband reaffirmed the debt or not. That would pretty much determine if he can now walk away from the car. The best place to start would be with the attorney who represented you.
    Answer Applies to: Massachusetts
    Replied: 3/21/2014
    R. Steven Chambers PLLC | R. Steven Chambers PLLC
    Did he reaffirm the debt? To reaffirm he must have signed a several-page document that was then filed with the court before his discharge was entered. If he did not reaffirm the debt will be discharged. If he did reaffirm then he still owes the debt.
    Answer Applies to: Utah
    Replied: 3/21/2014
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    If he listed it in the case, he should not have personal liability for it if he turns it in unless he reaffirmed the debt.
    Answer Applies to: South Carolina
    Replied: 3/21/2014
    Danville Law Group | Scott Jordan
    Bankruptcy law requires all debtors to all include ALL assets and ALL debts in the petition and schedules. Are you stating that your husband intentionally left an asset and a debt out of the schedules and now wants the bankruptcy court to grant a discharge of a debt that he knowingly failed to report to the court originally?
    Answer Applies to: California
    Replied: 3/21/2014
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