We filed Chapter 7 Bankruptcy that discharged July 13, 2020.
We said we wanted to keep my car since it will be paid off June 2020.
My husband lost his job due to COVID and we've been very careful with our tax return and stimulus to keep our bills current. That has run out now and I wasn't able to pay my car payment on time this month. I am taking a small emergency cash out from my retirement to help keep us afloat for a couple of weeks now that my husband is working again. I'm not even 30 days behind and they are wanting to take the car. I was recently promoted and have a take home car for work. I was told by a friend since I never signed a reaffirmation agreement and they didn't go to the 341 meeting, if they take the car I'm not liable for the balance (the car is worth a few hundred more than i owe so there may not be any balance) it feels childish to say just take it if you want to be a jerk about it but I don't actually NEED it and they aren't wanting to work with me. I just need 1 week to get the deposit from my retirement account. How will this affect my credit and finances if I just give it back?
Thank you for your time.
If you did not reaffirm, then you are not liable for the debt. It will have no effect on your credit to return the vehicle. Double check with your attorney and confirm that you did not reaffirm before acting.
Since you have another vehicle, start putting aside money each month for the next car. That way you can buy one for cash rather than falling into the finance cycle trap when the time comes.
Please note this is to be considered general advice and not legal advice about any particular situation. The answering of any question does not create an attorney client relationship and does not make the answer specific legal advice. I am an attorney admitted to the practice of law in the state of Georgia. Â
The answer from the attorney i Atlanta is probably true, but not necessarily. It depends on a couple of things that you haven't mentioned like wither or not the trustee administered an asset in your case. You really should consult with your attorney. A complete answer depends on a number of facts, and you probably have more options than you realize.
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