Giving up car loan DURING bankruptcy

February 19th, 2009 by Questions

I filed bankruptcy july 2008 and should be discharged approximately April 09. I have kept my 2007 car loan and make payments of 300/month. With the downturn in the economy i now owe 16500 on a car that is worth about 5500. If i decide to give the car back to the company (GMAC) …can it the loan be added to the bankruptcy; will it affect my future credit report and can they file a judgement against me if its done during the bankruptcy period. I tried to ask my trustee but h`es on vacation @ Thanks

Posted from: Prince Edward Island
/>Posted from: Prince Edward Island


One Response to “Giving up car loan DURING bankruptcy”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

To have the shortfall on your car included in the bankruptcy you would have had to return it at the beginning of the process, not in the middle. If you returned your vehicle now you would still be held fully responsible for any monies left owing once the car was repossessed, sold and the sale proceeds applied to your outstanding balance.

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