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If the vehicle is protected by the state or federal bankruptcy exemption, you can try to reaffirm the loan agreement with the lender. If that's not possible you will be required to surrender the vehicle and will be probably be held responsible for any deficiency and applicable fees after the car is resold.

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โˆ™ 2005-09-03 21:32:17
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Q: If you have a car loan included in a bankruptcy do you have to continue making payments?
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Related Questions

If you file for bankruptcy and you cosigned for someone can the car loan be included in the bankruptcy if the person is not making their payments?

YES, you can include it whether the payments are current or not.

If an account is closed by a credit grantor why would the card holder continue to make payments after bankruptcy findings are closed?

The card holder is under no legal obligation for the card holder to continue making payments after filing for bankruptcy, unless the case is dismissed without a discharge. There are some who believe that they can improve their credit rating by pay off debts that were discharged in a bankruptcy, but I believe there are better methods to reestablish credit after bankruptcy.

I had filed for bankruptcy 2yrs ago and it was dismissed. I have a zero balance on a auto loan that shows on my credit report. Do I still have to make my car payments?

If you reaffirmed your car loan during your bankruptcy, you agreed to continue making the payments. If you included your car in the bankruptcy, then the loan was wiped clean, as it appears to have been according to your credit report. Your car should have been repossessed, but apparently wasn't. You should check with the lawyer who handled your bankruptcy, but my guess is that your car slipped through the cracks.

Can a car be repossessed if involved in bankruptcy?

Depending on your state... a car that is included in a Chapter 13 Bankruptcy cannot be repossed. The Bankruptcy laws protect you from repossession. Just as long as you are in Chapter 13 and are making payments to the Trustee, your car cannot be repossessed.

If you continue to make payments will bank continue to pay taxes and insurance from escrow if you do not reaffirm your mortgage after chapter 7 bankruptcy?

If you continue making the regular mortgage payments, including the escrow amounts, you are reaffirming the debt. It would be better to formally file a reaffirmation agreement that is approved by the court.

If you are planning to file bankruptcy can you stop making payments on your credit cards?


What happens to spousal maintainance and child support if the person files for bankruptcy?

Spousal support and child support debts cannot be discharged in a bankruptcy, so the ex spouse must continue to keep making the payments. Failure to do so can lead to a dismissal of the bankruptcy case.

Could vehicle get repo if co buyer is in bankruptcy?

The short answer is no. As long as you are making the payments the car will not be repossessed. When the co-buyer goes before the bankruptcy judge they can have the car included or excluded from the bankruptcy. If it's included then the car will be "voluntary" repossessed. If it's excluded then everything is "business as usual" for you. The key is to keep your payment current and on time.

Is it illegal to take a car out of state when you are still making payments on it?

Not as long as you continue to make payments on it.

If a car was not included in your bankruptcy but you later change your mind and decide to stop making payments can the lender have a judgment issues for the balance?


Chapter 13 bankruptcy be dissimisal?

You can get a Chapter 13 bankruptcy dismissal by asking your lawyer to ask the trustee for a dismissal. If you are having trouble making the payments, you can ask for you bankruptcy to be modified.

How will you know if someone that owes you money and is making scheduled payments files bankruptcy?

Go to where the bankruptcy is filed and have the file pulled and there will be an accounting of all the debts and payments being currently made. It is public information.

Can you keep your home if you file a chapter 13 bankruptcy?

Yes, as long as you keep making the payments.

We did not reaffirm our van in the bankruptcy and kept making payments if we surrender it to the bank are we liable for the balance after auction?

If you did not list it in your BK, you will be responsible for any outstanding balance that is not recouped in the auction. Yes. Secured property is not dischargeable in any bankruptcy filing. ------------------------------ If you included it in the bankruptcy, but just didn't reaffirm it, you won't be responsible for any balance.

What happens when someone you cosigned a mortgage for has filed for bankruptcy?

When you co-sign on a loan or mortgage for someone, you are promising to make the loan payments if they can't. When someone files for bankruptcy, they are claiming that they cannot make their payments. It would stand to reason that if someone you co-signed on a mortgage for files for bankruptcy that you would then be liable for making the payments.

What happens if you loose your job after you buy a car?

You figure out a way to continue making the payments.

Are there any risks in paying off a debt that was discharged through the bankruptcy?

No. Paying it off or even making a payment, does not reactivate the debt. Nor will it obligate the person to make future payments on that account or any others included in the BK.

Can you get your repossessed car back if you file Chapter 7 bankruptcy and start making payments?

You will have to ask your bank about that. They are in control now.

If you file chapter7 bankruptcy can you keep your house if you keep making payments?

In most cases, yes. Contact your lawyer to be certain.

Can you keep your house after a bankruptcy?

Not unless your bankruptcy did the right things to allow you to keep it. If you are not in arrears in your mortgage payments before filing, you have to continue making the payments - preferably before the due date. If you are in arrears, you must file a chapter 13, with a plan to pay the arrears and whatever part of the unsecured debt you have to pay. Once the plan is completed, you can keep your house. If you get behind in your post-petition payments due, the bank will apply for relief from the automatic stay and you will lose your house.

When is it necessary to declare bankruptcy?

It is necessary to declare bankruptcy when a person cannot afford to continue paying for bills and other things they need. A person may declare bankruptcy if their business is not making any money.

If you file banKruptcy can your car be repo?

Yes. The financial insitution will typically call you to set up a time to pick up the vehicle or have you drop it off if you do not intend to reaffirm the debt. They are not allowed to call you to ask for payment, but can ask for the vehicle. You can, however, continue to make voluntary payments on the vehicle and they will not repo it if you keep it current. If you do reaffirm the debt, that means that you intend to keep the vehicle and will continue to make payments on the vehicle, meaning that they are allowed to contact you about making payments.

You kept making car payments after discharged in chapter 7 if you stop paying and don't surrender the car can the lender go and undo your bankruptcy?

No. But, the vehicle will become a repossession if payments are not made.

If you are in bankruptcy and its making things harder than before, are there any options available to me?

Depending on the type of bankruptcy you are in, you can drop out of it, often just by not making the required payments. Please note though that the bankruptcy will still appear on your credit reports for 10 years and you may have a hard time filing again, if you need to.

Must you pay off your bankruptcy balance when you refinance your mortgage?

It depends on how your mortgage / bankruptcy interaction works. If you are making plan payments and arrears are included in the plan, it can require some re-figuring. You should contact an attorney. Speak with an attorney about your specific situation. If you can not find an attorney, contact your local Bar association and they will refer you to one.