What will happen if I filed bankruptcy and before it was discharged I got a car I really needed and I can no longer afford the car? 20 Answers as of March 19, 2014

I did not reaffirm anything and my bankruptcy had since been discharged. Can I still turn the vehicle in? Bankruptcy discharged July 2013.

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Ronald K. Nims LLC | Ronald K. Nims
Since you bought the car after you filed your bankruptcy petition, neither the car nor the car loan are covered in your bankruptcy. You can't turn in the car and walk away from the payments, that only happens when you buy the car before you file bankruptcy. If you stop making the payments, the lender will probably repo the car then sue you for any balance that isn't covered when they sell the car again.
Answer Applies to: Ohio
Replied: 3/19/2014
Stephens Gourley & Bywater | David A. Stephens
If you purchased the car after you filed the petition, generally that debt is not discharged.
Answer Applies to: Nevada
Replied: 3/19/2014
Paul Stuber, Attorney at Law
Paul Stuber, Attorney at Law | Paul Stuber
Any contract you enter into after filing the bankruptcy even before the discharge is not part of the bankruptcy and you are responsible for the contract.
Answer Applies to: Colorado
Replied: 3/18/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The "Date Of Filing" is the important date. If this debt was not owed on the date of filing, the debt will be unaffected by your BK filing. You will still be liable on this obligation.
Answer Applies to: Colorado
Replied: 3/18/2014
Law Office of Marlin Branstetter
Law Office of Marlin Branstetter | Marlin Branstetter
If you purchased the car after the bankruptcy was filed you will be responsible for any deficiency owing on the car if you return it. Post petition debts are not discharged in a bankruptcy.
Answer Applies to: California
Replied: 3/18/2014
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    Assuming you took out the loan on this new vehicle after you filed your bankruptcy case, yes, you can turn the vehicle in, (called a voluntary repossession), but you will owe the full balance due and it will be a negative mark on your new post-bankruptcy credit.
    Answer Applies to: California
    Replied: 3/18/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You made a big mistake. The date you filed your bankruptcy is crucial. You cannot run up debts after filing Chapter 7 and include these debts in your discharge.
    Answer Applies to: Nevada
    Replied: 3/18/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you did not reaffirm then you can surrender the car to the dealer.
    Answer Applies to: New York
    Replied: 3/18/2014
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    That depends on when you obtained the car. If you bought it and financed it AFTER you filed bankruptcy, then it is not subject to the bankruptcy discharge and the creditor can pursue you for any deficiency should it be repossessed and sold. If you financed it PRIOR to the date of filing the bankruptcy and you did not reaffirm the debt, and if you named the car creditor as a creditor in the bankruptcy, then it can be discharged.
    Answer Applies to: California
    Replied: 3/18/2014
    Tokarska Law Center
    Tokarska Law Center | Kathryn U. Tokarska
    Any debt incurred after the bankruptcy FILING date, that is the date you filed the case, is not part of the bankruptcy. This debt would not be reaffirmed because it was acquired after the filing date and therefore not part of the bankruptcy. You remain responsible for the loan. If you turn the vehicle in and after sale there is not enough money to pay off the loan in full and to pay for the costs of liquidation, you can be pursued for the remaining balance.
    Answer Applies to: California
    Replied: 3/18/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    If you bought this car after you filed your bankruptcy then it is not part if your discharge. The filing date is what determines which debts are included in the bankruptcy discharge.
    Answer Applies to: Colorado
    Replied: 3/18/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    If you bought the car after you filed bankruptcy, the debt you incurred to buy it is not discharged. All you can do is try to sell the car for enough to pay off your debt, or negotiate a settlement with the creditor.
    Answer Applies to: Oregon
    Replied: 3/18/2014
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    If you brought the car after you filed the bankruptcy you are stuck with it.
    Answer Applies to: Connecticut
    Replied: 3/18/2014
    Law Offices of Eric W. I. Anglin
    Law Offices of Eric W. I. Anglin | Eric W. I. Anglin
    A chapter 7 bankruptcy only discharges debts that you incurred BEFORE the filing date. Any vehicle purchased after the filing date cannot be included in that case. You will be responsible for the vehicle loan.
    Answer Applies to: Indiana
    Replied: 3/17/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Nope. You are on the hook for the car in terms of deficiency.
    Answer Applies to: California
    Replied: 3/17/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The car is a post petition debt, you can't turn it in without consequences.
    Answer Applies to: California
    Replied: 3/17/2014
    Law Offices of Patrick Edaburn | Patrick Edaburn
    If the car was purchased after you filed then it was not covered. If it was purchased before filing it probably was but it's tough to be sure without seeing your file.
    Answer Applies to: California
    Replied: 3/17/2014
    Pearson Butler
    Pearson Butler | Jeffrey R. Butler
    When filing a Chapter 7, the court takes into account the creditors you owed at the time you filed bankruptcy. Since you incurred the debt after filing, the auto loan would likely be non-dischargeable, and you will still owe on the car loan. The risk you have is that if you allow the car to be repossessed, the auto financing company can sue you for a deficiency judgment which you could be liable for until you are eligible to file a Chapter 7 again (8 years) or file a Chapter 13. There's more to it, and you really should be talking to your bankruptcy attorney for more clarification.
    Answer Applies to: Utah
    Replied: 3/17/2014
    Idaho Bankruptcy Law | Paul Ross
    In a Chapter 7, only the debt listed in the bankruptcy on the date of filing is discharged. If you incurred new debt after filing, it is not part of the bankruptcy and not discharged. If you turn the car back, you can be on the hook for any potential deficiency.
    Answer Applies to: Idaho
    Replied: 3/17/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    If you purchased a car after you filed bankruptcy it is not part of the bankruptcy. You cannot reaffirm it, and if you surrender it you will be liable for any deficiency.
    Answer Applies to: Nevada
    Replied: 3/17/2014
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