Will surrendering my car after chapter 7 discharge negatively affect my credit in AZ?

Asked over 1 year ago - Phoenix, AZ

As per my attorney's advice, I didn't sign a reaffirmation agreement. I simply stated "pay and retain" and have been making my regular payments faithfully. My BK discharged a few months ago. My financial circumstances have improved, but my car's condition hasn't and I'd like to buy a new car without trading my old one in as I am upside down. Am I correct in assuming I can allow the lender to take my car and, because the debt was listed in by BK, this action cannot negatively impact my credit?

Attorney answers (2)

  1. Steven W Zachary

    Contributor Level 17


    Lawyers agree

    Answered . From the facts that you stated, you should not be responsible for the loan on the car you currently own. Before you move forward, I think you should ask your lawyer to be sure you are doing everything correctly. He/she knows the facts better than anyone. I would also be cautious about taking on new debt. Any debts you take on you will be responsible for and will not be able to file another bankruptcy for years.

  2. Jeffrey B. Lampert


    Contributor Level 19


    Lawyers agree

    Answered . Look, you are already in a rebuild status due to the BK. IF there were an impact due to the lender's report of a repo on a credit report, it would still pale in comparison to the impact of the BK.

    I hope you found this response to be of assistance. This response shall not be considered the rendering of... more

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